Foreign exchange market which is commonly known as Forex is an international market to buy and sell currencies from around the world in a decentralized manner. The modern foreign exchange market is built on 1970.If you are an investor then you can invest your money to buy and to sell various currencies and can make profit.
Currency trading depends on your small movements related to the value of one currency to another. In foreign exchange market or forex there are some functional centers who controls the entire trading between different buyers and sellers all over the world all the time except the weekends. They are open from Monday 0.0GMT to Friday 10.00GMT, so all the trading is done in between. The international trade and investment market is dependent on foreign exchange market or forex as it deals with currency trading and currency conversion.
Now you must be thinking what the operations actually happen in foreign exchange market are. Actually in a typical forex one party or trader buys some amount of a currency exchanging another currency. If we talk about the characteristics of forex then we can say that it is a quite unique business. As currency trading is handled internationally so it is geography dispersed. The trading volume of it represents the biggest asset class in the whole world leading to high liquidity.
It allows you to make profit 24 hours a day except weekends, so you get a big scope to make your profit. It deals with the various factors that affect exchange rates. In this way forex affects the currency rates. It does not always need big investments so one can invest small amount of money and buy one currency and can create profit accordingly. So we can say currency trading is better than fixed income trading which needs big investments as at the time you don’t have the will to invest you can stop it there and take out your earned profit.
It is said that foreign exchange trading or forex is a game between bulls and beers. So be careful and study all the relatives of your investment before investing and don’t fall into any trap so that you can have a safe and secure trading.