What is Forex ?

One of the most intriguing markets in the world right now is the Foreign Exchange Market. What people popularly call fx trading, currency trading or forex exchange happens in this market.

In the most simple explanation, the foreign exchange market is where currencies are traded. It is currently the largest and most liquid market in the world. It averages a daily trading volume of almost five trillion dollars. Even if all the stock markets in the world combined, all those markets would still be overshadowed by the immenseness of the forex market.

Fx, foreign exchange or currency exchange is commonly tagged as forex. Large financial institutions, organizations, companies, banks, and rich investors are experts in forex trading. They have found greater trading potentials that other investments cannot cater.

Currencies are very significant. These are medium for exchange and without it, people cannot conduct trades and businesses. If a person who lives in America wants to buy a product in Europe, that person has to pay in euros to conduct a trade. That person has to pay in Euros to purchase that particular product. A tourist traveling in China cannot pay in the dollar to see the Great Wall since the dollar is not the accepted currency in China. Hence, the tourist should first exchange the dollar with the Chinese Yuan before seeing that fantastic landscape.

I'm a newbie in this sphere, so, I believe, it was pretty informative for me. Thank you

Forex is a portmanteau of foreign currency and exchange. Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. According to a 2019 triennial report from the Bank for International Settlements (a global bank for national central banks), the average was more than $5.1 trillion in daily forex trading volume.

Forex is a very good market for making money and self-realization, especially when working with a trusted and reliable broker that has a fairly high level.

From my own experience, I can say that for every person Forex has its own knowledge and is interpreted in a completely different way. For me, this is just an opportunity to make money.

Originally posted by jabesx

From my own experience, I can say that for every person Forex has its own knowledge and is interpreted in a completely different way. For me, this is just an opportunity to make money.

That's very true. Like there are so many ways to make money in forex you just have have an edge, do the work and control your emotions as best you can

Nice explanation. Forex trading is pretty popular, it is a very liquid market with a huge capitalisation, and there are a lot of different pairs to choose from, so the versatility is also huge.

Doing the work is often what is left out by people coming into the business. There are no shortcuts and finding that edge that works for YOU is the hard bit.

Originally posted by cashisking86

Doing the work is often what is left out by people coming into the business. There are no shortcuts and finding that edge that works for YOU is the hard bit.

This is a good point, it's key to educate oneself and take the time to practice before starting to trade live.