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The simplest definition of foreign exchange is the exchange of one currency for another.
The foreign exchange market allows companies, banks and individuals to buy and sell foreign currencies. Unlike other financial markets, the foreign exchange market has no single location - trading is done globally via telephone and computer links. The Forex market is huge: the trading volume is in excess of
3 trillion USD per day, providing the greatest liquidity to investors.
In the past small investors have had limited access to the lucrative forex market. The Interbank market is no longer the exclusive domain of large players. Technological leaps (such as the state of the art Dealbook FX trading software) have opened up this exciting market to small speculators. Real-time Interbank dealing rates allow the trader to place a buy or sell order and see it executed within a fraction of a second.
There are always buyers and sellers in the forex market. The market absorbs trading volumes. A trader is never stuck in a position due to lack of market interest, volume and/or liquidity.
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