Forex currency trading guides for beginners - Basics
What is Forex?
When you travel to a different contry, you normally change the money on you into the currency of that country.
Usually there is a screen or a board with the various exchange rates.(Sometimes you get excited when you see your $1 is worth so much of the local currency. Only to have that excitement quenched when you pop into a shop to get a soda and realize the value is still the same.)
When you change your money to local currency, you are basically taking part in the forex market! In forex trading lingo, we say you've sold dollars and bought the local currency.
Just when you are about to go back home, you stop at the currency exchange booth at the airpot again to sell your local currency and buy back dollars. You then realize the exchange rate has changed. It's the change in exchange rates that gives a forex trader the chance to make money in the forex market.
The foreign currency exchange market, normally referred to as "forex" or "fx", is by far the biggest financial market in the world. On an average day, the New York Stock Exchange has a trading volume of about $75 billion. The forex trading market has a daily average of over $4 trillion by trade volume. This totally crashes the stock market!
View the chat below to see the comparison by average daily trading volume of the Lond stock exchange, the Tokyo stock exchange, the New York stock exchange and the forex market.

You can see that the forex market is over 54 times larger. The $4 billion figure given above covers the whole world forex market. Retail traders like you and I trade the spot market which has an average daily trading volume of about $1.5 trillion, which is still very huge.
So now when you hear all the noise being made about the stock market, know that there is an ever bigger market out there kown as FOREX!
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