Forex Education

                         MEANING OF FOREX

Forex, fx, spot  or foreign exchange is simply the Buying and Selling of currency in pairs.

Many people participate in the Forex Market unknown to them.

For example, a Japanese traveler who visited the US must have some Yen with him. And before he purchases any item or goods in the soil of the United States, he must surely visit an exchanger and convert his Yen to Dollar at a certain price at a particular point in time in order to buy.

As soon as his tour ended in the US, he returns to Japan with some Dollars, goes to an exchange booth and got his Yen back. This time, at a different exchange rate, it could be higher or lower.

This action is typical of what every trader does in the fx market.

I am convinced that you may have experienced such activity before.

Ok, let’s drop the stories and hit the point.

The foreign exchange market, which is popularly called "forex" or "fx," is the largest financial market around the globe world.

When you compared it with the Stock and Futures, the forex market appears to be un-surmountable.

It’s so huge!!

For example, the largest stock market in the world, the New York Stock Exchange (NYSE), trades a volume of about $74 billion each day while over $3 Trillion is traded on the Forex Market daily.

To be candid, if you combine the 3 powerful world Stock market together, that’s NYSE + TSE + LSE, they cannot see the break light of the forex market assuming they are to dig it out in a competition.

All over the world, the NYSE rings bell daily in the news. You hear about it on CNBC, Bloomberg, BBC etc.

Oh mother! the NYSE is up 30 minutes ago and down tomorrow, this and that, tits and tats... etc.

When people talk about this, they simply mean the stock market. The stock market is loud and noisy.

But if you try hard to compare it to forex, It appears too tiny, and it’s like telling a rat to challenge an elephant in the battle field. You can’t match both.

I would like you to take a look at the graph of the average daily trading volume for the Foreign Exchange Market, New York Stock Exchange (NYSC), Tokyo Stock Exchange (TSE), and London Stock Exchange (LSE):

The currency market is over 40 times GREATER than the trios!

Here is the real gist!

The over $3 trillion in the “Spot” market covers the whole universe foreign exchange market.

The retail traders like you and I trade about $1.47 trillion of the market.

Yet, the fx market is definitely so large.

I believe by now, you’ve got a feel about what the forex market is all about.

Prepare your mind to grab some pieces of the huge amount traded daily.

Before we proceed to that, I’d like to ask you just one question and I need the answer.

Why should you become a Forex trader?

I believe many of you will have these answer:

“I want to profit”, “I want to make money”, “My aim is $100,000 per day”.....etc.

That’s not a bad idea at all.

I think that’s what every businessman ought to think about.

But know that only 2% of traders are successful and great number of trader loss money when trading due to lack of ideas, systems and strategies

Before you begin to panic, let’s see some more realistic and good reasons why you mustbecome a Forex trader