What is Forex?
What is Forex & Why do people trade?
Forex is short for the Foreign Exchange. It exchanges approximately $5.3 Trillion per day, the New York Stock Exchange only exchanges approximately $20 Billion per day. Businesses, investors, bank and retail traders (such as yourself) exchange and watch the currencies that are available through an online broker to predict whether to buy or sell.
People trade for a variety of reasons, here are some reasons why below:
- You can trade from anywhere in the world
- Forex does not require a high initial investment.
- Traders can begin with as little as $100
- High liquidity allows large amounts of leverage.
The goal of Forex is to buy a currency that is anticipated to gain value or sell a currency that is anticipated to lose value against another currency.
Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). Anyone from anywhere is able to trade any currency.