| There is no other market in the world that can | | | | London, Frankfurt and New York. Thus unlike the |
| compare itself to the foreign exchange market. | | | | domestic stock exchanges, Forex market is |
| With almost USD 2 trillion in daily average the Forex | | | | functional internationally and the market operates |
| market is bigger than all the stock and bond markets | | | | 24-hour a day. Starting from Sunday evening (20:00 |
| of the entire world. A better way to understand its | | | | GMT) to Friday evening (22:00 GMT) you can carry |
| enormous size would be to compare it with any | | | | on with your speculative endeavors in the Forex |
| national stock exchange. Let's use the New York | | | | market. It lets you take the advantages of |
| Stock Exchange as an example. The total volume of | | | | happenings world over affecting the markets |
| trading in Forex is more than one hundred times the | | | | internationally. |
| daily trading on the NYSE on an average day. | | | | Then, Forex market is exceptionally liquid. You will |
| With a volatile currency environment in this age of | | | | always find buyers for your currency and sellers to |
| globalization and free market, the investors and | | | | buy from. If you are dealing in the major currencies, |
| financial institutions have found a new battle-field in | | | | you can rest assured of the price stability and narrow |
| the global Forex trading to prove their financial power | | | | spreads. It is mainly the leading banks with global |
| and also to cut a sizable profit. Why do you think, | | | | presence that provide liquidity to investors, |
| this Forex trading has flown to such a great height in | | | | companies, institutions and other market players. |
| the recent years? Well, there are several reasons | | | | Leverage that you enjoy is rather high. It allows you |
| behind this immense growth. | | | | to hold assets 100 times more than your margin |
| The operations in stock market are supervised by a | | | | deposit. Suppose you have a deposit worth of USD |
| centralized exchange. But in Forex market you will | | | | 10,000. It allows you to trade on the volume worth |
| not find any such exchange. It works on the | | | | of USD 1,000,000 through leverage. Then you can |
| "interbank" market, making it similar to an OTC or | | | | leverage the first USD 25,000 of your investment up |
| over the counter market. The two parties in the | | | | to 100 times. But for the additional collateral, you get |
| trade interact with each other directly either over | | | | the leverage up to 50 times. |
| telephone or through the electronic networks all over | | | | It may sound very interesting to step into the |
| the world. Thus in Forex trading you do not have to | | | | foreign currency market in hope of making some |
| pay commission to the share brokers for your every | | | | profit, But be vary of the risks that are involved. The |
| buy and sell of the stocks. And this opportunity of | | | | internet has made the opportunity open for |
| trading without commissions makes it particularly | | | | everyone to become small time investors, but before |
| lucrative as an investment option for seasoned | | | | stepping in this volatile world of foreign currency |
| investors who frequently take part in day trading. | | | | trading you should spend some time to learn about |
| The five major cities of the world take the center | | | | the implications and pitfalls that this market is entailed |
| stage in Forex trading and they are: Sydney, Tokyo, | | | | with. |