What is Forex? Only the Biggest Market in the World!

Filed under: Learn Forex Trading |

Okay, so the very fact that you are reading an article on this site probably already means that you know what forex is (so you can skip this next part!). It is short for foreign exchange and it refers to the exchange of one currency for another in the hope of selling it back later for a better price. This is the very essence of the forex market – to speculate on the strength of a currency in the hope of making some profits.

 

The strange thing is that, although forex is, by far, the biggest market in the world – it is a relatively unknown beast when it comes to the vast majority of the general public. Just try it the next time someone asks you, “What have you been up to today?” Say, “I did a bit of forex trading”, and see what kind of response you get. It will likely be a slightly confused look, followed by either pretending that they know what it is for fear of seeming ignorant, or an outright request for you to explain.

 

The forex market is a 24-hour market and over four trillion (!) dollars change hands every single day. That is one-million-million dollars ($1,000,000,000,000)! That is a lot of money going unnoticed. As you can see, the market is a leviathan and people go about their day-to-day business, counting their pennies, completely unaware that this is happening.

 

A few years ago, I myself did not really know what forex was. I had heard the term and seen forex brokers advertised without really knowing what it was all about. And I think you will find that most people are like that. The good news is that if you can learn to trade forex, you will only need a few small crumbs from the daily $4 trillion kitty.  So what are you waiting for? Get studying!

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