The Foreign Exchange market is a global market for trading currencies. It was once the arena of a select few, accessible only to the world's most sophisticated hedge funds, the largest investment banks, and the biggest corporations. But not anymore. The Foreign Exchange market, also called Forex, or FX, for short, is now within your reach, and a basic understanding of it can help you start trading in the largest financial market in the world. Forex involves the exchange of currencies. Every transaction involves two currencies -- one currency is bought, while another is sold. For example, a EUR/USD buy trade would mean you are buying Euros, and the price of those Euros would be quoted in US dollars. This is often called an "exchange rate" -- how much of one currency you'll need to buy a certain amount of another currency -- and exchange rates are based on the supply and demand of the currencies on the market. The market itself is an electronic network of international buyers and sellers with an estimated daily trading volume of 5.4 trillion USD. For comparison, that's a trade volume about 200 times greater than the New York Stock Exchange. Two thirds of that volume is traded by the top three financial centers in the world -- London, New York, and Singapore -- while other big players in the market include Tokyo, Hong Kong, Switzerland, France, and Australia. But you don't need to be in those financial centers to access the market. Because it's fully electronic, Forex is increasingly accessible around the world. That means with the right tools and training, you can learn the skills necessary to become a Forex trader.
Visibility: 42
Duration: 1m 46s
Rating: 3