The Foreign Exchange market is a market where currencies of nations are being traded. There are four main trading centers—London, New York, Tokyo, and Singapore—and due to the different time zones the Forex market (in global terms) is open 24 hours a day, 5 days a week.
Since currencies are simultaneously bought and sold, an investment increases or decreases in its value depending on the currency’s movements. Various reasons cause fluctuations in the exchange rates; these can either be actual monetary flows or expectations of changes in monetary flows.
THE FOREX MARKET is a very unique market with many distinct characteristics.
Just to name a few:
- Largest financial market in the world
- Offers great opportunities to gain profits
- Open 24 hours a day, 5 days a week
- Accessible online to traders worldwide
- High liquidity market
- Most of the trade involves only few basic major currency pairs
- Risks can be analyzed and controlled
- Leveraged trading
- Low Margin requirements
- Zero commission trading
