What is Forex Trading?
The world of Forex Trading is a daunting place without the background knowledge. Forex stands for Foreign Exchange and refers to the International Currency Markets or Foreign Exchange Market. It is the largest financial market in the world with a daily turnover of more than $1.5 trillion. It is bigger than even the stock market. That is three times the aggregate amount of the United States Equity and Treasury markets combined. Initially the Forex market operated under central banks and government institutions but today includes the world wide web and the dot com booms.
There is no central marketplace for Forex trading and is conducted electronically like computer networks. Traders from anywhere in the world can trade at any time since the market is open 24/5 in every time zone. Majority of currencies are traded in a few major financial centres located in Zurich, Frankfurt, Singapore, Hong Kong, Paris, New York, London and Sydney. It is a fast-paced world with news breaking anytime of the day and night and changing the price quotes on a constant basis. The International Forex Market is open 5 days per week and closes over the weekend.
The Forex market is a lucrative opportunity to earn a passive income.