How does the FOREX market differ from the stock market?
The FOREX is one of the fastest growing markets in the world because it offers the average investor leverage* unlike most any market, up to 200:1. Since the FOREX is traded globally through a network of banks and financial institutions 24-hours a day from Sunday at 5pm (Eastern Time) through Friday at 4pm (Eastern Time), there is no central exchange. Traders and investors can trade the FOREX most anytime that it is convenient for them.
The FOREX is one of the fastest growing markets in the world because it offers the average investor leverage*. Since the FOREX is traded globally through a network of banks and financial institutions 24-hours a day from Sunday at 5pm (Eastern Time) through Friday at 4pm (Eastern Time), there is no central exchange. Traders and investors can trade the FOREX most anytime that it is convenient for them. * The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.
Forex trades involve at least two different counties, and the entire globe is included with the market. Forex transactions usually take place through a broker or company, such as a bank. There are many brokers available to help assist regular citizens in making currency exchanges. What all makes up the foreign exchange markets? Many different countries and a variety of currency exchanges and transactions make up the Forex market. Trades taking place in the Forex market usually consists of a lot of money. Many of those involved in the foreign exchange market are involved in financial businesses. They trade currencies and liquid assets very quickly. This market is very large, in fact, the Forex market is the largest stock market in the world. Those companies and individuals involved trade every single day. You may be surprised at the large number of people who are involved with Forex trading. Over the last few years, an estimated 1 – 3 trillion dollars has been traded every single day! O
