If you are someone who is interested in investing, you have to certainly have heard the expression, Forex Trading. What many investors do not understand is that Forex is not a new term alone, but instead a brief form of Foreign Exchange. As its name suggests, Forex Trading simply describes Foreign Currency trading.
As recently as years ago, Forex Currency Trading was restricted to the large institutions and banks since they had access to the tools and systems needed to satisfy the then substantial barriers of entry set in the Forex Trading game.
Today, things have changed radically. Recent advancements in technology have empowered the individual investor to take part in the sport, and commerce with any of the many online trading platforms that exist now.
Once you get started with selling and buying in the Forex Currency Trading market, it is going to become clear to you that there exist four Currency Pairs that completely dominate the Forex market. The four pairs are US Dollar vs. Euro, US Dollar vs. British Pound, US Dollar vs. Japanese Yen and US Dollar vs. Swiss Franc.
The prime goal of any investor that deals in the Foreign Exchange Market is to hold a bitcoins volatility currency that is appreciating in value in relation to the other currencies. To illustrate with an example, if you decide to purchase 100 British Pounds in exchange for 200 US Dollars, maintain the 100 British Pounds for a week and at that interval, the value of this British Pound appreciates in connection with the US Dollar, you get to convert those Pounds back into Dollars for say $250 and make a tidy profit.
Unlike national stock markets around the world that operate for only a few specified hours every day, Forex Currency Trading is available 24 hours a day. Since every nation trades on the foreign exchange market, it is always business hours in certain region of the world and thus it is open all day. The volume of trade on the foreign exchange market is approximately a whopping $1.2 Trillion.
Another important distinction is that Forex Currency Trading is not cantered on any exchange like the NASDAQ. There’s not any central governing authority or business and trading is performed involving all the major banking institutions of the world.
The advent of the World Wide Web has given rise to online Forex Brokers which are very similar to an internet stock trading accounts. These agents have thousands of Investors placing orders via their online portals and therefore have the ability to allow anyone to open a Forex account and purchase and sell in any quantity.