What Is Forex?
If you believe that trading is easy and effortless, you may be in for a big surprise. If you are not careful, your entire investment account may be wiped out in no time. Forex trading, just like trading any other investment vehicle, is not easy. You need practice and education to enhance your chances of success. So, what is Forex, and how do you know if trading currencies is right for you?
The currency market is the world’s largest investment market, and it doesn’t stop growing. It regularly surpasses the US $4 trillion mark in daily average turnover. To help you imagine how big the Forex market is, compare it to the NY Stock Exchange that has a daily volume of “only” US $25 billion.
In the past, when the question “what is a Forex trader” was asked, the answer would simply be a professional trader or a large financial institution. This was true since a large portion of the Forex market volume then was contributed mainly by these big players. Today, however, with the advent of highly improved and efficient trading platforms, more and more retail traders have joined the fray, and have discovered that Forex trading is well suited to their investment goals.