About Forex

The Foreign Exchange (FOREX) market is a cash (or “spot”) interbank market established in 1971 when floating exchange rates began to materialize. This market is the arena in which the currency of one country is exchanged for those of another and where settlements for international business are made.  
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (Euro, British Pound, Swiss Franc and Japanese Yen). Activity within the market is created by six main groups: central banks, commercial banks, other financial institutions, corporate customers, brokers and independent currency traders who have established home-based businesses.

The Foreign Exchange Market, is a worldwide market for buying and selling currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily exchanges are worth approximately $2.6 trillion (US dollars). In comparison, the United States Treasury Bond market averages $300 billion a day, and American stock markets exchange about $25 billion a day, you can see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stock and futures markets combined. Unlike other financial markets, the Forex market has no physical location and no central 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.

The most popular currencies along with their symbols are shown below: 

  • EUR — Euros

  • USD — United States dollar

  • CAD — Canadian dollar

  • GBP — British pound

  • JPY — Japanese yen

  • AUD — Australian dollar

  • CHF — Swiss franc

  • NZD — New Zealand dollar

Forex Market Summary of Benefits:

  • Forex Market Summary of Benefits

  • Forex is open 24 hours a day.

  • Forex is the most liquid market in the world.

  • Up to 400:1 leverage. Without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.

  • No restrictions on shorting which allows you to enjoy trading opportunities during any market condition.