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Overview of Forex Trading


Forex Trading refers to trading in the foreign exchange market. It also known as FX or Foreign Exchange Trading. The Forex market is a worldwide decentralized financial market for the trading of various currencies. National Financial centers around the world function as centralized points of trading between various buyers and sellers around the world. The trading occurs around the clock, with the exception of weekends. The value of the various world currencies is determined by their value in the Forex Market.


The modern Forex Market formed during the 1970s when certain countries began switching to floating exchange rates rather than the previous exchange rate regime under the Bretton Woods System.

The Forex Market is unique and a trader’s delight because it has

  • A huge trading volume with high liquidity
  • Global dispersion
  • Almost continous trading
  • Experiential trading factors leading to ‘expert’ trading advantages
  • Opportunities for small, quick profits
  • The ability to leverage large funds for larger profits
The Forex Market is reportedly worth an average daily turnover estimated at $3.98 trillion.



Comments
Austin Ljungquist commented on 22-Feb-2016 01:05 PM
fantastic. Many thanks


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