FOREX trading is not just about currency, it also involves stocks and similar types of financial products. The currency of one country is weighed against the currency of another country to determine value. When trading stocks on the FOREX market, the value of the that foreign currency is taking into consideration. Most countries have control over the value of that countries value, involving the currency, or money. Governments, banks, financial institutions and large businesses are those most often involved in FOREX capital markets.
Why is the stock market different from the FOREX market?
A forex trade can take place worldwide and it involves as least two different currencies. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.
What really makes up FOREX capital markets?
A variety of transactions and countries make up the foreign exchange market. The FOREX market involves the trading of large volumes of money. Traders in liquid assets such as a cash or instruments that can be bought and sold fast are usually those involved in the FOREX market. The FOREX market is extremely large. Compared to the stock market in any one country, the FOREX market is considered much larger overall. Sometimes trading is completed on weekends, but not all the time because the FOREX market trades 24 hours a day as it is.
The number of people involved in FOREX trading would surprise you. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. To get a scope on the amount of money trading hands each day, think of how much a trillion dollars is and then multiply times two!
The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the Internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availability of this trading market. FOREX only accounts for about ten percent of the total trading from country to countr
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