Forex or Foreign Exchange is the Cash Machine of the World
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rohitha
Forex (FOReign EXchange) is the cash machine of the world. The international forex market offers the active trader the opportunity to access an interesting investing asset class which offers a large amount of leverage and a market open for trade 24 hours a day.
The cash machine of the world is opened by New Zealand and Australian trading on their Monday morning (while it is Sunday in USA) and close on Friday afternoon in USA (Saturday in Oceania and Asia). Forex is a very exciting market to actively trade.
A forex position is expressed in terms of the first currency in the pair. For example, if you went long on the Euro and short on the US Dollar you would have traded the EUR/USD currency pair.
It is widely reported that the Forex market has a volume of some $1.5 trillion daily, which makes the Foreign Exchange market the largest and most liquid trading market in the world. Because of the sheer volume, the trader can enter and exit their forex trade at any time with minimal execution risk. Also, because of the huge cash machine, no one person, company or entity can control the market. Not even a central bank can control the market price (Of course this has certain exceptions - e.g. the Chinese Yuan, a currency which is still artificially fixed to a certain extent).
The forex market has no fixed address or exchange unlike other worldwide exchanges. The forex trading market operates through an electronic network of banks, corporations and other parties.
The cash machine of the world is opened by New Zealand and Australian trading on their Monday morning (while it is Sunday in USA) and close on Friday afternoon in USA (Saturday in Oceania and Asia). Forex is a very exciting market to actively trade.
A forex position is expressed in terms of the first currency in the pair. For example, if you went long on the Euro and short on the US Dollar you would have traded the EUR/USD currency pair.
It is widely reported that the Forex market has a volume of some $1.5 trillion daily, which makes the Foreign Exchange market the largest and most liquid trading market in the world. Because of the sheer volume, the trader can enter and exit their forex trade at any time with minimal execution risk. Also, because of the huge cash machine, no one person, company or entity can control the market. Not even a central bank can control the market price (Of course this has certain exceptions - e.g. the Chinese Yuan, a currency which is still artificially fixed to a certain extent).
The forex market has no fixed address or exchange unlike other worldwide exchanges. The forex trading market operates through an electronic network of banks, corporations and other parties.
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