What is Forex Home
Forex means FOReign EXchange and it is a global market where world currencies can be traded against its other. Forex Market is huge with daily volumes of about 5 trillion dollars. The Forex Currencies fluctuate according to actual monetary flows but additionally according to anticipations about global economic conditions.
Forex Market Participants
Forex market incorporates many different types of participants, the most important are:
1. Central and Commercial Banks
2. International Trade Companies
3. Forex Brokers (ECN, STP and Dealing-Desk brokers)
4. Large, Medium and Small Institutional Investors (i.e. Investment Companies, Hedge Funds etc)
5. Common Retail Traders | 6. World Travelers
Where is Forex Situated?
Forex works as a non-centralized network. It works almost the same way as the internet does (World Wide Web). That means that every order from any trader is executed in a global network of demand and supply, called the ECN network (Electronic Network of Banks). That fact adds reliability and transparency into Forex trading transactions but most importantly it adds liquidity and that means low cost of transactions.
What are the Advantages of Trading Forex?
Forex Trading offers some unique advantages:
(1) Enormous liquidity which is transformed into minimal transaction cost (cost is measured basically by the spread which is the difference between buyers and sellers)
(2) Huge Leverage) Leverage means trading with more funds than you hold in your account, a common leverage in Forex Trading is 100:1)
(3) Wide Choice of everything (Hundreds of brokers to choose, hundreds of strategies, manual and automated systems, signal providers, you name it!)
(4) Trading 24 hours per day (24/5) and access via desktop and mobile devices
(5) Fantastic Forex Promotions are available at any time (50-100% welcome bonus or even No-Deposit bonus up to $100)
There are 3 trading sessions: 1) New York Trading Session | 2) London Trading Session | 3) Tokyo Trading Session
Forex Market Trading Hours
The Forex market is an OTC (Over-The-Counter) Interbank market open for 24 hours a day. The Forex market opens at 21:00 GMT on Sunday and closes on Friday at 21:00 GMT.