Disable Preloader

Education Center

What is Forex?

The foreign exchange (currency or Forex, or FX) market is the biggest and the most liquid financial market in the world with the daily volume of more than US$4 trillion more than three times the aggregate amount of the US Equity and Treasury markets combined. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits.

Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

Why FOREX?

24-Hour Trading

This benefits and advantages all the more make FOREX trading a very attractive business venture. Compared to stocks, FOREX trading is twenty-fours. A FOREX trader can trade right away once they spot an opportunity to buy low and sell high. Remember, money has time value. And a lot of factors in the economics and politics of a government affect how low a currency will drop or how high a currency will gain. It is fairly easy to say buy low and sell high. But the trick is to know when to do it. With twenty-four trading, the FOREX trader has the ultimate advantage already. Since, after all, time is money.

2.jpg
2.jpg

High Liquidity

A market or business is considered very liquid if the assets involved can enable the person to directly meet his payment obligations. In other words, if cash is at hand—immediately. What is a more liquid market than the FOREX market? FOREX has high liquidity, because it can be traded swiftly, without considerable loss of value, and anytime within the trading hours or in FOREX trading’s case—24/7.

No Commission

FOREX trading need not have brokers in between to facilitate. With other forms of money market ventures and stock trading, brokers come in handy; because they are able to handle varied forms of portfolios and company stocks for the investor. Even if FOREX trading is involved with multiple currencies, it is a very direct business where the trader himself can act on his own; thus no commissions are leaked out and all profits are kept!

2.jpg
2.jpg

Steady Market Availability

In all businesses, businessmen strive for a steady market, if not an increasing one. Why spend time in a trading scene when it is short-term? Because FOREX trading is all about the buying and selling of currencies, it is a continuously moving market. Money make the world go round, as the cliché goes. The market will always be there. The trader only has to be aware of the rising and falling of the currencies. When is the currency starting to be weak? When is it going strong? Is there a trend?

Forex
Forex
Forex
Forex

Copyright© Stepup FX 2018. All right reserved.