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Forex Trading

From Wikiversity

Forex is a short hand name for Foreign Exchange (also known as the FX Market), which is a type of financial market. Forex Trading is whereby an institute(s) or individual sell and buy one country's currency for another country's currency for an intended purposes. The Forex market has been around for long time but it's popularity has been made possible by the internet in the early nineties. This introduced a Forex market to electronic platform which made trading currencies faster and efficient. The introduction of electronic platform meant that Forex trading could be done through one's computer through the browser by web based trading applications or install-able trading software provided by the broker or banks. This lead to more and more of individual traders as to compared to before where there were few individual and who had to call their broker or be on the trading floor in order to trade currencies. Today the Forex is considered the most largest and liquid market in the world, and almost $3 trillion is traded everyday and in a certain day the market can trades as much as $7 trillion per day.

Even though Forex market is the largest financial market in the world, the market is decentralized or over-the-counter (OTC).

Further reading

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Books

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The Basic of Foreign Exchange Trading

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