Forex, FX forextradingwebsiteonline cashback forex forextradingbrokerwebsite forex trading site are common abbreviations for the foreign exchange market. In fact it is the largest financial market in the world, where currencies can be sold and bought freely. In the current conditions of the foreign exchange market, established in the 70s, when the free exchange rate was introduced, only the big market players determined the price of one currency against another according to demand and supply. Until the freedom of external control and free competition, the foreign exchange market was a good market. With a daily turnover of over a trillion dollars, the foreign exchange market performs more than three times the combined volume of the U.S. stock and Treasury markets. The foreign exchange market is a market where buyers and sellers deal directly with each other, and buyers and sellers use different methods of communication to manage their foreign exchange business. Unlike other financial markets, the foreign exchange market does not have a physical location or exchange center. Since there is no physical place in the foreign exchange market, the market continues 24 hours a day, from one time zone to the next, every day through every major financial center in the world. Trillions of dollars are exchanged every day in foreign exchange transactions. From 1997 to the end of 2000, the daily trading volume increased from about US$5 million to US$1.5 trillion or more (according to different recent studies it reached $1.7 trillion per day, which makes all other market transactions insignificant). It is very difficult, if not impossible, to determine the exact volume because there are no exchange centers for transactions. But one thing for sure is that the foreign exchange market is growing at an alarming rate. Before the advent of the Internet and electronic trading, multinational banks and wealthy people could trade currencies in the foreign exchange market through the banks trading systems. These systems required at least US$1 million to apply for an account. Thanks to advanced online technologies, today investors can access the Forex market 24 hours a day, five days a week, for just a few thousand dollars. The Forex market is a non-stop spot market for trading national currencies, usually through brokers called Forex brokers. Foreign currencies are bought and sold continuously and simultaneously through the local and global markets, and traders increase or decrease the value of currencies depending on their fluctuations. Forex market conditions change all the time depending on real time events and is therefore also considered to be a very volatile market. The conditions in the Forex market are never the same and change every second. The foreign exchange market makes the combined volume of the futures and stock markets in New York, London and Tokyo insignificant. Depending on its size and scope, it is many times larger than all other markets. Statistics show that spot and forward foreign exchange transactions take place in the central bank market. Fifty-one percent of the market is in spot foreign exchange transactions, and 32% is in currency swaps. Forward foreign exchange transactions account for 5%, and central bank foreign exchange transactions account for the other 8%. The central bank market therefore accounts for 96% of the global foreign exchange market, with the remaining 4% being spread across all global futures exchanges. For traders, forex trading offers an alternative to stock trading. There are thousands of stocks to choose from and only a few major currencies to trade (USD, JPY, GBP, CHF, and EUR are the most popular). Forex trading also offers much more leverage than stock trading, and the minimum starting investment is very low. And with flexible trading hours (forex trading is available 24 hours a day), you will get the reason why so many stock traders are turning to day trading in currencies.
