This tutorial will give you a bird’s eye view as to why you should engage in forex trading.
- Why Forex Trading?
- History and Now
- Why is it important?
- Advantages of Forex Trading
Forex is also known as the foreign exchange market (or FX). It is the world’s largest market in terms of daily transaction volume.This market is open 24 hours a day making it highly accessible to the investors. Unlike any other financial market, Forex has a low entry cost due to the large no of market participants. Its retail part came with the development of the Internet. This enabled retail clients to trade Forex online via various trading platforms and this makes it the most cost-effective market.
With the development of technology and internet access everywhere, you can trade in Forex whenever you are not sleeping. The new innovations of Social Trading let you learn from professional traders and even you can copy their strategies in trading Forex.
Forex, being a market which began decades earlier welcomed the institutional clients at its initial stages. Currently, there are trillions of US dollars traded daily on the Forex market along with the retail clients contributing nearly 5% of the total volume or around 250 billion US dollars in daily turnover. But why is the Forex market so large?
Large multinational trade companies, financial institutions, hedge funds, and lots of other companies require foreign currencies to operate their businesses. Therefore, they began buying one currency online in exchange for another currency, and this created and still does quite a reasonable flow of funds. In other words, Forex is the global marketplace for trading currencies.
With a daily turnover of more than $5trillion, Forex is the most liquid market as well. There is always a buyer when you want to sell and there is always a seller when you want to buy.You can make more and more money to earn more, which you can withdraw whenever you want.