What is Forex? To be successful in Forex trading, you need to understand the purpose and operation of forex trading.
Forex trading is a direct cross-currency trading with world currencies online, where also trade all major banks, multinational corporations, financial institutions, and a small percentage of individuals. The word FOREX is made up of “Foreign Exchange” (which means cross-currency trading) and it is the largest financial market in the world. It is unique and different from the stock market, there are no brokers and office space needed.
Another factor that is different is, that investors are from different parts of the world. Consequently, this leads to the fact that the market is open and active 24 hours a day, no matter what time it is. The largest trading center for trading is in New York and London, where performs the most of trades and the number of applicants is increasing steadily every day.
From the moment the market opens on Sunday night in Australia, until next Friday night when it closes in New York, all the time a numerous transactions are made. On the FOREX turns 2.5 trillion dollars a day, and it represents the largest business in the world. Every moment there is someone who opens and closes the position. The big advantage of currency trading is that regardless of whether the selected currency value increase or decrease, we can make money, as currency trading with world currencies takes place in both directions buy (value decreases) / sale (value increases).