FOREX BASICS INTRODUCTION
Congratulations on taking the first step down the Forex Lane. The forex market is the most exciting market traded around the world. We will start by taking you throught the basics and then move on to the more complex strategies.
The forex market is the richest financial market in the world currently averaging 3 Trillion dollars a day a figure close to 75 times that of the New York Stock Exchange making it highly liquid and impossible for any group to coerce. The market trades 24 hours a day 5.5 days a week giving anyone with some time to participate live in the market.
The forex market is an OTC(Over the Counter) market and has no traditional trading house or exchange. Rather forex is traded across the globe between different banks on a continual basis. The forex market was previously only available to the super wealthy or hedge funds but now through increased competition has become significantly cheaper and available to the retail investor. The competition in the forex market has reduced the cost of forex trading to the extent that forex has become cheaper to trade relative to equities.
The forex market fluctuates, trades and trends just as any other market and is susceptible to various events around the world. In addition it is just as easy to go long as it is to go short, allowing profits on the up and down trend. The only real difference between the forex market and any other is the fact that forex is relative i.e. To buy a Euro a dollar must be sold.