For-ex stands for Foreign Exchange; it is a global market for dealing currencies at floating exchange rates. The foreign exchange is the world’s biggest currency market, on an average everyday dollar one to two trillion is traded in the foreign exchange.
There is no fixed center for the trade, so all the trade is done over the internet, fax and telephone. The foreign exchange trade witnessed a massive boom only after online forex trading systems were introduced, internet and telephone has helped the trade grow from $70 billion a day in the 80s to around $1.5 trillion to $2 trillion today.
The currency market is made up of around five thousand institutions, most of which are international banks, central government banks, commercial companies as well as big brokers and all these are connected with each other and do business on the go through online forex trading system. The major centers for online forex trading are New York, Frankfurt, London, Paris, Tokyo, Hong Kong, Bombay among others, and all these centers also deal and communicate through online forex trading. The benefits of online forex trading are listed below:
- No Commission! – Online forex trading is commission free, there’s no exchange or hidden fee either. Your broker earns from the spreads.
- Currency market never sleeps: online forex trading allows you to keep track and deal from anywhere at anytime.
- Mini accounts: some websites offer mini accounts that allow you to get started with as little as $200.
- Instant: it’s instant unlike offline trade which may involve paperwork.
The nature of the market is such that risk comes inherent and can not be separated but risk can be minimized if you are trading at the right point of time and the right point of time can be anytime only online forex trading allows you to be there at the right time as all other methods as explained above are slow and usually take up a lot of time in processing.
For-ex stands for Foreign Exchange; it is a global market for dealing currencies at floating exchange rates. The foreign exchange is the world’s biggest currency market, on an average everyday dollar one to two trillion is traded in the foreign exchange. – Online forex trading is commission free, there’s no exchange or hidden fee either.
