What is Forex Market? Some Useful Information

Foreign exchange market or Forex market is the biggest financial market of the world. It is also expressed as FX market. All the expressions are applied to delineate the business of buying and selling of different currencies of the world where over $2 trillion change owners on a daily basis. Foreign exchange market is a global market where currencies are bought and sold simultaneously without restraint. Forex trading was introduced in the 1970s. It has evolved since then and has become the largest financial market with maximum liquidity. The volume of daily trading in the Forex market is higher than 100 times that of the New York Stock Exchange (NYSE).

For making investments, Forex market is an ideal market since it is independent from any outside dominance and there is free competition. More often than not, forex trading is speculative and not similar to stock market trading. Foreign exchange trading operations are not carried out by any central exchange but an Interbank market, which is also known as an Over-the-Counter (OTC) Market. Forex trading occurs between two dealers, either on the Internet or via the telephone across the world. The important trading hubs are located at London, Sydney, Tokyo, Frankfurt and New York and this makes Forex market a 24-hour market.

For forex trading, the application of fundamental analysis and technical analysis is necessary. These analyses assist a trader to predict and ascertain the growth in the price movements of the currencies on the basis of which he tries to forecast market movements and earn profits.
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2 Responses to this post

  1. The Redhead Riter on July 21, 2010 at 4:53 AM

    We were actually talking about this at lunch yesterday. Great post.

  2. Florida on July 22, 2010 at 10:49 AM

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