The forex or FX market, which is short for the foreign exchange market, is the place in which individuals, companies and governments all trade different currencies with one another. Put simply, the forex market is the marketplace where money is bought and sold.
Open 24 hours a day and 5 days a week, unlike stock or bond markets, the forex market doesn’t close at the end of each day. Instead, trading just shifts to different financial centers around the world. The day starts with the Sydney session and moves to Tokyo, London, Frankfurt and finally New York before it is time for Sydney to do it all over again!
When compared to various stock, commodities and bond markets worldwide, the forex market is by FAR the biggest financial market in the world. The NYSE sees an average of $22.4 billion per day in volume traded, while the London Stock Exchange sees an average day turn over $7.2 billion in volume traded.
They sound like big numbers, don’t they? Well the forex market does an absolutely massive $5.3 TRILLION, monstering them all in comparison!
The most appealing thing about trading forex is just how accessible it is to trade for regular people like you! Known as ‘retail traders’, these are the people trading the forex market from their own homes with nothing more than a computer, a connection to the internet and their own personal trading account with a forex broker such as Vantage FX.
Can you make it trading forex alongside companies, governments and central banks？