Forex stands for Foreign Exchange. FOREX stands as Foreign Exchange. FOREX traders or banks use it to buy and/or sell currency around the world, click for additional reading.
Forex market was only open to the public in 1996. For entry to the Forex market, USD10,000,000. Forex market is not a popular choice of investment due to its simplicity and ability to be withdrawn at any moment. Daily trading volumes were also less than USD500,000,000.
Bill Clinton, ex-president of America, opened the Forex market to the public for the very first time in 1996. Since then, Forex brokers have grown exponentially and the trading volume continues to grow. Forex is the biggest daily trading platform. It has a daily trading volume of more than USD3 trillion. This volume is greater than any other stock exchange volumes. It is about 4 to 5x larger than the US Futures Market volume.
FOREX is so crucial that it can instantly bring down an economy. Many Asian countries experienced currency crises in 1997. These included South Korea, Thailand (and Indonesia), Singapore, Malaysia and Singapore. George Soros, one of the key players in this crisis, has made more that USD1 million.
A decrease in the competition among Forex brokers online has resulted in a lower minimum initial capital requirement to open an Account. To trade currencies, an account must be opened with USD250 capital.
The forex market is available 24/7 and non-stop for five consecutive trading days. One of two methods can be used to trade Forex. It can either be during the up- or down market. Both options can be profitable if you know how to do it. Forex trading is completely free of commissions, unlike stock market trading. Forex trading is also possible with high leverage. This allows you small amounts to invest.