| WHAT IS FOREX?
The Foreign Exchange market (also referred to as the Forex or FX
market) is the largest financial market in the world, with over $1.5
trillion changing hands every day. That is larger than all US equity
and Treasury markets combined! Unlike other financial markets that
operate at a centralized location (i.e. stock exchange), the worldwide
Forex market has no central location. It is a global electronic network
of banks, financial institutions and individual traders, all involved
in the buying and selling of national currencies. Another major feature
of the Forex market is that it operates 24 hours a day, corresponding
to the opening and closing of financial centers in countries all across
the world, starting each day in Sydney, then Tokyo, London and New
York. At any time, in any location, there are buyers and sellers,
making the Forex market the most liquid market in the world.
Whether you are aware of it or not, you already play a role in the
Forex market. The simple fact that you have money in your pocket makes
you an investor in currency, particularly in the US Dollar. By holding
US Dollars, you have elected not to hold the currencies of other
nations. Your purchases of stocks, bonds or other investments, along
with money deposited in your bank account, represent investments that
rely heavily on the integrity of the value of their denominated
currency ¨C the US Dollar. Due to the changing value of the US Dollar
and the resulting fluctuations in exchange rates, your investments may
change in value, affecting your overall financial status. With this in
mind, it should be no surprise that many investors have taken advantage
of the fluctuation in Exchange Rates, using the volatility of the
Foreign Exchange market as a way to increase their capital.
Traditionally, access to the Forex market has been made available
only to banks and other large financial institutions. With advances in
technology over the years, however, the Forex market is now available
to everybody, from banks to money managers to individual traders
trading retail accounts. The time to get involved in this exciting,
global market has never been better than now. Open an account and
become an active player in the largest market on the planet. Discover
the advantages of investing with CMS International today!
Continue to Trading Basics
|