Frequently Ask Questions
1. What is Forex?
2. How BIG is Forex?
3. Why Forex?
The "Off Exchange Retail Foreign Currency Market" (FOREX) is where one country's currency is exchanged for that of another through a floating-exchange-rate system.The lack of a physical exchange allows the Forex market to conduct business on a 24 hour, 5.5 days per week time frame, from one time zone to another across the chief financial centres.Currencies are generally traded through a broker or dealer and are executed in currency pairs.
Today, FOREX has a trading volume of 2 trillion US dollars a DAY. That's US$2,000,000,000,000. To put that in perspective, the New York Stock Exchange trades 25 billion US dollars a day.
Forex is 3 times the total amount of the STOCKS and FUTURES markets combined.
6 reasons why, we believe, the FOREX Market is an outstanding one to help you create wealth:
- All you really need is an internet connection via a computer or a mobile phone!
- It has high volatility and liquidity! With a daily trading amount of 1.9 trillion US dollars, it has been called the most liquid market on the planet. It also means you can enter or exit the market at practically any condition! However, in volatile market conditions, substantial losses may occur.
- It is a market that opens 24 hours a day, 5.5 days a week from Monday morning to Saturday morning. That enables you to trade when you're staying up to catch the late night movie!
- Because of its sheer volume, the FOREX Market cannot be controlled by a single person, institution or country.
- It has tremendous leverage for your dollars. Every $1,000 you trade gives you a leverage of 100 times. That means when you trade with $1,000, $100,000 is actually trading for you! However, leverage may also work against you. In volatile market conditions, substantial losses may occur.
- Trade whether the currencies are weakening or strengthening. This is because you can buy a currency and sell it later at a higher price, or sell it first and buy it later at a lower price.