What Is Forex Trading
What Is Forex Trading ? What is the forex market? The foreign exchange market of FX market is the OTC market where all the worlds currencies are traded. This is what setts the prices to the FX markets around the glob. In terms of just volume its is considered the largest market in the world and leading currencies are USD, GB, EUR and JPY.
If you have ever bought goods or traveled to a foreign country you participated in FX market when you exchanged your USD for EUR. The main participants of the market are the larger countries, banks and institutions around the world. The market is open 24 hours a day and closes during the weekends.
Currencies always trade in pairs when so when you buy EUR with USD you bet that the EUR will go up against USD.
The Forex Market is unique in many ways because of the following characteristics:
-There is a huge supply of volume but also a huge amount of traded volume each day
-It's geographical dispersion
-The markets are open 24 hours a day
-The variety of factors that affect the exchange rates
-The use of large leverage to increase profits
This is why many say the market is considered the ideal of perfect competition.
If you want to trade on the Forex Market as a retail trader you would usually go to a broker that offer CFD contracts. We explain what a CFD contract is in this post.
Check out the brokers we have reviewed and recommended here https://www.compareforexbrokers.org/brokers and pick the one that fits you or just gives you the largest sign up bonus.