What is Forex – FX?
Forex (FX) is the market in which all currencies are traded. The Forex market is the largest, most fluid market in the world, with average traded values in the trillions of dollars per day.
There is no central marketplace for currency exchange; trade is usually conducted over the counter, at various financial institutions. The Forex market is open 24 hours a day, five days a week, except for holidays, worldwide.
The largest foreign exchange markets are located in major financial centers like London, New York, Singapore, Tokyo, Frankfurt, Hong Kong and Sydney.
Why Trade Forex – FX?
Trading Forex has gained much popularity in the past few years as it offers the investors or the traders a number of advantages when compared to other available investment opportunities. Some of them are listed below-
- 24 Hour Access – Foreign exchange markets are active- 24/5. The Forex market is always active and hence trading is carried out anytime, anywhere, as trading goes on 24 hours a day because of the business hours in different countries.
- Low trading cost – One attractive element of Forex trading, is that it does not have high, expensive fees.
- Unmatched liquidity- Liquidity is indeed an impressive feature of any trading.
- Considerable leverage available- Traders find it convenient and impressive to use this benefit in Forex trading.
- Global exposure- Globalization has paved way for investors reaching out to opportunities anywhere, often far from where they live.