World of Money
The Foreign Currency Trading Marketplace, now referred to as the ‘Forex’, has been trading for more than a century, but until late in the 1900s Forex Trading was restricted to Governments and Banks and was beyond the scope of the small trader like you or me.
The Forex is a marketplace where Governments, Banks and Institutions trade currencies, with the intention of making a profit as the value of one currency is assessed against another. These ‘Big Boys’ still have the major influence on the Forex market and this is often reflected in currency movements at certain times of the day, particularly when markets open for trade in geographic zones.
If you have traveled to another country, you have traded in a foreign currency. When you arrive at your destination, you need the local currency, so will have exchanged some of your currency for theirs. You’d have seen the variation in exchange rates that impact on how much you receive, this is how Currency traders work, they trade these differences and movements, buying and selling $millions each day as the exchange values fluctuate.
Unlike the stock market, the Forex Market trades continuously 24 hrs per day. It opens with the Asian market, then progresses to the European, the UK and finally the US. As the US market closes the Asian market opens again, so Foreign Currency Trading runs around the clock virtually 6 days per week, finishing at 5pm Friday US time.
Following deregulation in the 1990s, the Forex market became accessible to anyone, so with the right tools and a good understanding of what you are getting involved in, virtually anyone with a disciplined approach and the right strategies can make money trading Forex.
With more than $3 trillion traded every day, the Forex market is bigger than all the stock markets combined. It has the potential for astute traders to make serious money, but can also be the fastest and surest way to lose it as well. This market does not take hostages, a trader lives or dies by his trading decisions.
The Foreign Currency Exchange has no centralized headquarters and each country has its own laws, regulations and international agreements that apply to Forex Trading. The Foreign Currency Exchange is in reality little more than a worldwide network of traders connected by the internet, telephone and computer screens.
In recent years authorities have been successful in exposing scams and frauds but it is still very much a buyer beware environment. To win in this market you need to learn to trade Forex from the experts, but you should also learn to verify what they are telling you is both correct and suitable to your trading systems. Test, test then test some more and only when you are satisfied that the system they expound suits your trading style should you proceed. Always remember that Forex trading is extremely risky.
OK, that’s a bit of an overview for newcomers, now I’ll get into more detail about Foreign Currency Trading, so look through other articles that interest you.
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