Whether or not you are aware of it, you already play a role in currency trading. The simple fact that you have money in your pocket makes you an investor in a nation currency. By holding US dollars, for example, you have elected not to hold the currencies of other nations. When a currency is traded, the transaction is carried out on the foreign exchange market (also referred to as the forex or FX market). The forex market is the largest financial market in the world, with nearly $4 trillion changing hands every day!
Unlike other financial markets that operate at a centralized location (i.e., the stock exchanges), the worldwide forex market does not have a central location. It is a global electronic network of banks, financial institutions, and individual forex traders, all involved in the buying and selling of national currencies. A major feature of the forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world.
At any given time, in any location, there are buyers and sellers making the forex market the most liquid market in the world. What is forex? Traditionally, access to the forex market has been made available only to banks and other large financial institutions. However, with advances in technology over the years along with the industry’s high leverage options, the forex market is now available to money managers and individual forex traders.
With some initial capital (as low as $200 with
FXDANA), and a computer with an internet connection you can become a participant in this global and liquid financial market.
Or, you can test the market with a practice account that does not involve real money. Simply fill out our demo account form here, after which you will be prompted to download MT Trader, our trading platform.
This forex overview continues with a quick, but detailed explanation of how forex trading works. You can continue by clicking on Next Page or use the navigation on the top of this page to skip ahead.