Have you ever thought of buying or selling money? It sounds kind of funny, but there is a way for you to do just that in the Forex market. Forex is a nickname for what is more formally known as the foreign exchange market. The foreign exchange market is the largest financial market in the world. It is estimated that somewhere between 2 and 3 trillion dollars worth of currency is exchanged every day! To put this in perspective, the New York Stock Exchange (NYSE) averages roughly $50 billion dollars in volume per day.
This means that the Forex market is roughly 50 times the size of the NYSE! The Forex market is a pure market and free from any external control. It is considered a perfect market since the price of a currency is based solely on the supply and demand of a particular currency. So, what exactly is exchanged on the foreign exchange market? Cold, hard cash. Well, more accurately bits of data that represent tangible currency, but the essence of Forex is trading one country’s currency against another. Let’s explore this further.
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