Foreign Exchange or simply known as FOREX is referring to the over-the-counter, global market. This is where investors, banks, institutions as well as traders are exchanging speculations either to sell or buy world currencies.
Open Night and Day
Here, trading is executed through interbank market. This is basically an online platform wherein currencies are being traded 5 days a week, 24 hours a day.
FOREX is actually among the biggest trading markets, coupled with global turnover of approximately 5 trillion dollars. And mind you, this takes place on a daily basis. Yes, that is how big the market is.
As per the transactions in FOREX market, all of it does involve simultaneous buying and selling of two different currencies. These are otherwise referred to as currency pairs. Additionally, it includes quote currency and base currency.
As a matter of fact, EUR/USD or Euro/US Dollar is one of the most traded FOREX pair in the market.
Are You Ready for the Big Game?
On FOREX market, the trades in the currencies are typically amounting to millions. Therefore, a small bid-ask price could make huge difference and add massive loss or profit. Thus, any trader or investor needs to be extra careful in their decisions. Well as they say, big risks come with big rewards. So it is up to you how you would handle the heat.