About Forex!

Forex (Foreign Exchange) is the name given to the "direct access" trading of foreign currencies. With an average daily volume of $3 trillion, forex is larger than all the futures markets combined and, for that reason, is the world's most liquid market. In the past, forex trading was limited largely to enormous money center banks and other institutional traders. But in just the past few years, technological innovations and the development of online trading platforms allow small traders to take advantage of the significant benefits of trading foreign currencies with forex. 

Just like these other investment alternatives, foreign exchange offers traders/investors a market (it is an over-the counter market) where they can buy and/or sell an investment product. In this case it is a specific currency pair. The currency pair may be the Euro versus the US Dollar, the US Dollar versus the Japanese Yen, the British Pound versus the US Dollar , the Euro versus British Pound, or a number of other currency combinations. 

You can now become part of this fast-moving, complex and enormously lucrative market by using your PC or in the comfort and privacy of your home, office, PDA or web-enabled mobile phone.

Whilst most financial markets may incur commissions, clearing-and exchange fees, Forex is commission free. 

There are no restrictions on short selling and stop orders in Forex as there are in the other financial markets. One 24-hour a day consistent margin rate allows Forex traders to leverage their capital more efficiently with as high as 100-to-one leverage. With a start up requirement of $2500, Forex trading is much more accessible than other markets with high margin rates and huge capital requirements.

The Forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major markets in Asia, London and the United States, the market remains open and liquid throughout the day and overnight. Most other markets are dictated by the time zones of their trading locations.

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