Share your favorite articles, read about Forex trading. Quite simply, it’s the global market that allows the exchange of one currency for forums Forex. If you’ve ever traveled to another country, you usually had to find a currency exchange booth at the airport, and then exchange the money you have in your wallet into the currency of the country you are visiting.
You go up to the counter and notice a screen displaying different exchange rates for different currencies. My one dollar is worth 100 yen? When you do this, you’ve essentially participated in the forex market! You’ve exchanged one currency for another.
Or in forex trading terms, assuming you’re an American visiting Japan, you’ve sold dollars and bought yen. It’s these changes in the exchanges rates that allow you to make money in the foreign exchange market. 5 TRILLION a day trade volume. Some may even find it sexy.
So the NYSE sounds big, it’s loud and likes to make a lot of noise. Oooh, the NYSE looks so puny compared to the forex market! The currency market is over 200 times BIGGER! But hold your horses, there’s a catch! So you see, the forex market is definitely huge, but not as huge as the others would like you to believe. Aside from its size, the market also rarely closes! The forex market is open 24 hours a day and 5 days a week, only closing down during the weekend.
So unlike the stock or bond markets, the forex market does NOT close at the end of each business day. Instead, trading just shifts to different financial centers around the world. The day starts when traders wake up in Sydney then moves to Tokyo, London, Frankfurt and finally, New York, before trading starts all over again in Sydney! In the next section, we’ll reveal WHAT exactly is traded in the forex market. Next Lesson What Is Traded In Forex? What is a Pip in Forex? What is a Lot in Forex?