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What Is Forex Trading

Foreign Exchange is a shortened name for the word Forex, which is also known as FX. The word Foreign Exchange means Exchange. The definition of Forex can be used to express all of the international markets where one currency is being evaluated with another currency and foreign exchange is being traded. So What Is Forex?

The daily volume of the Forex market, which is known as the largest market in the world, is stated as 5.3 trillion dollars per day according to the Bank for International Settlement (BIS) reports, which are published every 3 years. As many as $ 1.5 trillion of all transactions are traded by individual investors. When investors make these transactions, the currencies traded are evaluated according to the performance of the countries with each other. Considering that NYMEX, which is considered the world's largest stock exchange, has a daily trading volume of approximately $ 22.5 billion, it is possible to have an idea of the size and size of the Forex market. In the Forex market, currency trading is not the only one. In this market, commodities such as gold, oil, silver, as well as futures contracts, which are defined as CFDs, can be traded.

The Forex market is open 5 days 24 hours a day. Forex can also be referred to as the over-the-counter market (OTC) with this feature, where there is no single trading center. All transactions that can be carried out in all areas of the world can be met in financial centers such as New York, London and Tokyo. The transactions of commercial banks, central banks, institutional investors, insurance companies, hedge funds, Individual Investors and international institutions turn Forex into the world's most liquid market.

Due to its liquidity and high trading volume, it is possible to trade in the Forex market without paying any commission. Since the early 90s, with electronic communication networks and electronic infrastructure, it is possible to say that all investors have access to their accounts online at all hours of the day, as well as managing their portfolios as they wish. Variability between currencies has turned the foreign exchange market into a profitable area for investors. Forex offers significant advantages to individual and institutional investors with its two-way trading and leverage factor characteristics.

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