Video: What Is Forex?
Every day since the dawn of man the trader – about 150,000 years ago (pix of 2 stone-age men exchanging a rock for a wheel) – commerce has ruled our lives. Today, not a moment goes by without materials, money and even ideas being exchanged between people, companies and countries. Banks exchange loans and capital; corporations exchange products and knowhow; tourists exchange travel tips and currencies. And investors make a profit each time one of these transactions takes place. Investors can invest in stocks, bonds, indices and other assets on stock-markets, in options and futures at a futures exchange, or foreign currencies in the forex market. What’s best is that nowadays they can do most of this online, from the comfort of their homes, on the train or even vacationing abroad.
Of all the financial markets available, forex is by far the biggest. If, for example, the New York stock exchange brokers deals totaling $23 billion on an average day, the forex market boasts a daily volume of over $5 trillion – that’s more than 200 times the volume of the world’s largest stock exchange. And because the forex market isn’t centralized in one exchange in one country, it’s active 24 hours a day – whenever a financial market is open anywhere around the world.
Trading forex is free. As in every exchange of goods, there’s a spread, which is the difference between the buy and sell rates of assets. But other than that, you get access to the trading platforms for free; there are no commissions; and what you make is yours to keep.
So if you’ve decided it’s time to take control of your savings and invest them yourself instead of paying a broker or a bank for their services, forex just might be a good place to start.
Now that we've introduced you to the basic terms of Forex Trading, you can open a free Demo Trading Account and practice trading online in live market conditions, risk free.