FOREX MARKET
A person who buys and sells currency on the Forex market is known as a “Forex Trader”.There are many other markets which deal with many different items. Have you heard of the Futures Market? Have you heard of the Stock Market?
Well, the Forex (FX) market is just another market where people get together to buy and sell currency. It is open 24 hours a day from Sunday around 10pm UK time until Friday 9pm UK time. The FX market is the largest financial market to exist amongst all other markets. Over 2 trillion dollars change hands every day in this market.
Have you seen the film Trading Places? Did you see how all the traders gathered together in the trading pit to buy and sell their commodities? FX is slightly different. Nobody goes to buy and sell at the pits. Instead, you do it from the comfort of your own home sitting at your own computer table. You can buy and sell currency with a few clicks of your mouse. That’s how easy it really is.
For every person that wants to buy currency, there must be someone who is willing to sell currency at that exact same price.
“What if there is no one to sell you that currency at that exact same price”?
Since 2 trillion dollars change hands every day in the FX market, it is extremely unlikely that there are no traders willing to sell at that price. There are so many traders in this market that money changes hands at the exact prices they want. This is what you call market liquidity. The FX market is a very liquid market.
The Forex market is also known as the Forex Spot market as opposed to the Currency Futures market. With the Spot market, all transactions made are dealt with immediately. With futures, you are buying/selling currency in the future.
posted by Forex 1 million is possible @ 3:28 PM
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