Forex, also known as Foreign Exchange, FX or Currency Trading, is a Decentralized Global Market where all the World's Currencies Trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. All the world's combined Stock Markets don't even come close to this. But what does that mean to you? Take a closer look at Forex Trading and you may find some exciting trading Opportunities unavailable with other Investments.
FOREX TRANSACTION: IT'S ALL IN THE EXCHANGE
If you've ever Traveled Overseas, you've made a Forex Transaction. Take a trip to France and you convert your pounds into Euros. When you do this, the Forex Exchange rate between the two currencies—based on supply and demand—determines how many Euros you get for your Pounds. And the Exchange Rate fluctuates continuously.
There is no central marketplace for Currency Exchange; trade is conducted over the counter. The forex market is open 24 hours a day, five days a week, except for holidays, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zu¨rich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or country may participate in this market.
"" Forex Transactions take place on either a spot or a forward basis.""
A spot deal is for Immediate Delivery, which is defined as two business days for most
Any forex transaction that settles for a date later than spot is considered a "forward."