Why should you trade

What is Forex and why should you trade?


Although perhaps not as well known as some other markets, foreign exchange (or Forex) market is the largest securities in the world. In fact, if you combine all other markets in the U.S. together, Forex is 30 times greater than even that. An average of 2 billion dollars are turned every day in forex trading. Clearly, the Forex market is something that should be interested in taking a closer look.

I'm sure you are familiar with stock exchange where people buy and sell shares in companies. Exchange also includes buying and selling, but in the global currency instead of stocks. Trade in Forex will involve selling one currency countries in order to buy another. For example, I can not believe that the Euro is going to strengthen and to sell some of my American dollars to buy some euros.

The stock market, stocks hundreds of different companies are traded on a daily basis. With Forex, the situation is somewhat simpler in that about 85% of the daily trading involves a small group of major currencies. These are the U.S. dollar, British pound, euro, Japanese yen, Swiss franc and Canadian and Australian dollars. The most liquid assets which means that you should always be available for the buyer to adjust the seller and vice versa.

Trading in Forex starts in the morning in Sydney and progress in the world within 24 hours before arriving back to begin again the next morning in Sydney. This is another benefit of Forex trading as traders are able to take advantage of all the important fluctuations and changes at any time of day.