WHAT IS FOREX ?
Let’s fetch some statistics:
In 2013 – Forex market trading averaged $ 5.3 trillion per day.
Most actively traded instrument was FX swaps and that is $2.2 trillion per day in 2013.
US dollar remained as the dominant currency covering 87% of all trade followed by Euro and Japanese Yen.
These statistics are clearly indicating the vastness currently in Forex market trading. To realize this business of vigilantes lets elaborate the term Forex. Forex is a financial market that is concerned with world currencies. The term indicates Foreign Currency Exchange trading. The Forex trading commenced in 1978 and now it is considered as the most profitable financial market in the world. Forex is playing a vital role in world economics too.
Forex is considered as the most predictable and stable marketplace. Even the last economic downfall could not affect the market and thus the market is rising faster. Forex market fluctuates only on severe global situations like beginning or ending wars, international agreements, discovery or allocation of natural resources such as gold, oil, gas, etc.
The reasons behind the expansion of forex market are:
It operates 24hrs a day due to different time zone.
Buying and selling currency pair can be conducted even in the split seconds.
It doesn’t require a central place for trading rather it is available for everyone.