If you multiply the amount of money that changes hands in a day on the US stock and Treasury Bills markets by three, you'll still have less than a third of the amount of money that changes hands on the currency Forex (foreign exchange) market. On the Forex market, money from one country, like US dollars, is traded for money from another country, like Japanese yen.
But unlike other economic markets around the world, Forex trading is not centred in one place. There is no historic exchange building on Wall Street or Throgmorton Street. Currency Forex trading takes place only over telephone wires and the Internet.
But it does exist, and it's made up of a global network of financial institutions, people, and banks that work around the clock and aren't limited by borders. When it comes to the Forex market, neither time nor distance matter.
At one time, banks that kept a lot of money in different currencies so they could invest and do business around the world were the only ones who could trade currencies on the Forex market. People could only trade currencies on the Forex market by going through their banks. But when exchange rates were no longer regulated, the number of people trading currencies on the Forex market began to grow.
What is currency trading on the Forex?
When a private company or government wants to buy or sell goods or services in another country, it has to "barter" its own currency for the currency of the country where it wants to do business. A lot of investment firms also trade currencies on the Forex market as a riskier part of their portfolios. To learn more about e-Forex Trading, go to http://www.e-forextradingsystem.com/.
Individuals can also trade currencies on the Forex market, as long as they have enough money to take risks and are willing to do the work needed to master the art of trading currencies on the Forex market, which can be very complicated.
Trading Currency and Forex at Home
Many people are interested in the Forex market because they think it's a good way to make money and they can do it from the comfort of their own homes. All you need is a personal computer with Internet access and a workstation that is set up to have as few distractions as possible. They see the foreign exchange (Forex) market as a way to make money no matter what is going on with the economy around the world.
Traders who buy and sell currencies on the Forex market make or lose money depending on how the exchange rates change. When compared to each other, the value of all currencies is always going up or down. It is up to the individual investor to understand how conditions around the world will make currency values go up or down before putting his or her money at risk by trading those currencies.
