Lets take a look at Foreign Exchange Market and its history
What is the foreign exchange market, and what's its history?
The foreign exchange market (Forex, FX or Currency Market)is a worldwide over-the-counter financial market for the trading of currencies. It operates 24 hours a day, with the exception of weekends, around the world through banks, brokers, companies and individuals like you and me.
The purpose of the Forex originally was to assist the trade of goods between countries and aid international investment. It allows a company based for example in the UKto buy goods from the USA and pay in dollars even though the company in the UK operates in pounds.
Today a large percentage of trades on the Forex market are purely speculative. In other words the company/individual buying or selling the currency has no intention of actually taken possession of the particular currency he or she is trading in. Not sure which currencies to trade? Read this article on
It can be hard to put an exact figure on the amount traded each day but it is estimated that around $3.98 trillion would be an average day. Yes that's every trading day! To put that into some perspective, that's $200 billion more than the Federal GovernmentOf America will spend this YEAR!!!
And people ask me "why the Forex market has become such a
With the forex being such a large market have you every pondered what if anything could possibly have any effect on it, to be able to make it change direction? Or is the forex foreign exchange market so big that there is nothing that would make it move?
Let's take a look at
what moves the forex market.
The Forex market that we all trade in today was formed in the early 1970's, gradually taken over from the Bretton Woods System but it's
goes back way further than that.
There are three basic ways open to you to trade the Forex market
, margined forex accounts and spread betting. Please read our articles on all three to decide which direction would be best for you. I hope they help.
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