The Forex Market
Forex is short for Foreign Exchange. Forex market is a global market where currencies are traded. It is the largest market in the world with over $5.1 trillion traded every day.
Forex market sees more trade volume a day compared to any other, even the New York Stock Exchange, which has a daily trading volume of $25 to $30.1 million.
24/5 Market
One reason for the high trade volume of the Forex market is that there isn’t a single center of trade and trading centers keep moving between different time zones allowing the market to stay open 24 hours a day, 5 days a week.
Participants in Forex Market.
Currency market is traded in by banks, commercial players such as companies, investment funds, and retail traders. The most influential players and the ones that have the most control when it comes to ascertaining market direction are the banks. The interbank market contributes the highest volume to Forex.
Making Profits.
Profits are made in Forex trading by buying when the prices are rising so that the currency can then be sold at a higher price. On the other hand, selling can also be profitable if it is done at a time when prices are falling since it allows the trader to buy the currency back at a lower price. The difference between the buying and selling prices determines the profit or loss per trade.