What is Forex Trading? it is the global market that allows the exchange of currency in another currency. If you have previously traveled to another country, you usually need to find a currency exchange booth at the airport and then replace the funds in your wallet with the currency of the country you are visiting.
Currency Exchange Rate
Go up to the counter and notice a screen displaying different exchange rates for different currencies.
You find “Japanese Yen” and believe to yourself, “Wow! My one dollar is worth 100 yen?! I have ten dollars! I’ll be rich !!!”
When you do this, you are primarily involved in the Forex market! You have exchanged currency in another currency.
Or in terms of foreign exchange trading, assuming you are an American visiting Japan, you sold the dollar and bought the yen.
Before returning home, stop at the exchange booth to replace the miraculously left yen (Tokyo is expensive!) And note that exchange rates have changed.
These changes in exchange rates are allowing you to reap money in the foreign exchange market. This is called Forex Trading.
The foreign exchange market, commonly known as “Forex” or “Fx”, is the largest financial market in the world.
Compared to the $ 22.4 billion daily size of the New York Stock Exchange (NYSE), the foreign exchange market appears to be very important with a daily turnover of $ 5 trillion.
The world’s largest stock exchange, the New York Stock Exchange (NYSE), has a turnover of about $ 22.4 billion every day. If we use a beast to represent the New York Stock Exchange.
It seems intimidating. Some may find it exciting.
You hear about the NYSE in the news every day … on CNBC …Bloomberg …and the BBC … make sure you probably hear about it at the local gym. “New York Stock Exchange today, Blah, Blah.”
When people talk about the ” market”, they usually mean the stock market. So NYSE looks great, it’s high and likes to make lots of noise.
But if you actually compare it to the Forex trading, it looks like this very small.
The currency market is more than 200 times bigger! It’s huge! But hold your horses, there is hunting!
This huge figure of $ 5 trillion covers the entire global foreign exchange market, but the daily turnover of our retailers represents between 5% and 6% of the total trading volume, or $ 300-400 billion.
As you can see, the Forex market is certainly huge, but not as huge as others would like to believe. We do not want to exaggerate. We just keep it.
Regardless of its size, the market is rarely closed too!
The Forex market is open 24 hours a day, 5 days a week, and closes only during the weekend.
So unlike stock or bond markets, the Forex market does not close at the end of each business day.
Instead, trading only moves to different financial centers around the world.
The day begins when Sydney traders wake up and then move to Tokyo, London, Frankfurt and finally New York, before trading begins again in Sydney!