Forex 101: Definition & General Characteristics

What is Forex?

By: online-affiliate-programs.com Email: [email protected]

Definition

Forex refers to the global decentralized market for trading foreign exchange currencies.

It’s the largest and more liquid financial market in the world worth a staggering $5 trillion USD/day.

Forex is Decentralized

There is no central exchange to go and trade currencies.

There is no clearing house.

Investors trade directly with each other using the internet, dealers and other third parties.

Forex is 24 hours

24 hours a day except weekends.

From 22:00 GMT on Sunday (Australia Open) until 22:00 GMT Friday (New York Close)

Forex is Regulated

There are several independent and governmental bodies around the world that oversee the currency market.

Their main task is to protect investors for fraudulent activities and ensure market transparency by enforcing the law.

There is a Forex regulator in almost every country.

High Liquidity

A few reasons why Forex is the most liquid market in the world:

Highly valuable asset class.

Globalize market.

Key player involved.

Large trading volumes.

Key Players

Governments

Central Banks

Hedge Funds

Large corporation

Brokers

Top 10 currency traders (2013)

Deutsche Bank

Citi

Barclays

UBS

HSBC

JPMorgan

RBS

Credit Suisse

Morgan Stanley

BOA

Retail Forex Trading

The retail Forex trading is only 5% of the overall market.

It is estimated at $50 - $100 billion in daily volume.

It’s the fastest growing segment of the market the last few years.

Thank you!

Further reading:

Forex Guides

Forex Affiliate Programs

Get in touch:

Web: http://online-affiliate-programs.com/

Email: [email protected]