The forex market is an exciting place. The one good thing about entering into the forex market is that you can trade anytime at your convenience.
The global Foreign exchange market (‘FX’, ‘Forex’ or ‘FOREX’) is the largest market in the world as measured by the daily turnover with more than US$6 trillion a day eclipsing the combined turnover of the world’s stock and bond markets. The forex market measuring a propelling turnover is one of the many reasons why so many private investors and individual traders have entered the market. The investors have discovered several advantages many of which are not available in the other markets.
What is Forex Trading?
Forex (in simple terms, currency) is also called foreign exchange, FX, or currency trading. It is a decentralized global market where all the world’s currencies trade with each other. It is the largest liquid market in the world.
The liquidity (more buyers and sellers) and competitive pricing (the spread is very small between the bid and ask price) available in this market are great. With the irregularity in the performance in other markets, the growth of forex trading, investing, and management is in an upward trajectory.
Why Trade Forex?
The Forex market works 24 hours and 5-1/2 days a week. Because governments, corporates, and private individuals who require currency exchange services are spread around the world, so trading on the forex market never stops. Activity on the forex market follows the sun around the world, so right from the Monday morning opening in Australia to the afternoon close in New York. At any point of the day, you can find an active pair to trade.
Also, the forex market is enormous in size and is the largest market with millions of participants. Hundreds of thousands of individuals, money exchangers, banks, hedge fund managers everybody participates in the forex market. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session