Forex stands for Foreign Exchange. FOREX refers to the worldwide currency market, where you can purchase and sell currencies. FOREX dealers and banks manage this market, clicking here.
The Forex market was available only to conglomerates and high-net-worth investors prior to 1996. USD10,000,000 of capital is necessary to be eligible for the initial capital. The forex market is not popular with investors as it does not allow them to make an investment. Forex market’s daily trading volume was lower, at USD500,000,000 per hour.
Bill Clinton approves the Forex market opening it to public trading in 1996. Trading volume continues to grow as Forex brokers continue to expand rapidly. Forex is currently the world’s largest trading currency. Daily trading volumes exceed USD3 trillion, which is far greater than any stock exchange volume. Also, it is about four-five times larger than US Futures markets volume.
FOREX exchange markets can bring down an economy’s status in seconds. The 1997 currency crises affected many Asian countries like South Korea (Thailand and Indonesia), Singapore, Malaysia, Singapore, Malaysia, Singapore, and others. George Soros was one player that benefited more than USD1 billion in less time during the crisis.
There has been a decrease in Forex brokers available via the Internet, which led to an increase of minimum capital requirements for accounts. You can open an account and start trading currency using USD250 of your initial capital.
Forex traders can access the market 24 hours a day and 5 days a week. Forex trading can occur in either the bull or bear markets. With the correct knowledge and skills, you can either make or lose money. Foreign trading does not come with commissions, unlike the stock market. Forex trading can be done with high leverage by traders without much capital.