Intro to the Forex Market
The word FOREX is derived from Foreign Exchange; the forex market is the largest financial market in the world. The market is open 24 hours per day, five days per week, and has an estimated $3 trillion daily turnover.
This tremendous turnover is more than the combined trading activity of the world's main stock markets on any given day. This makes foreign exchange a very liquid market and a very desirable focus for financial trading.
Unlike many other securities markets—securities are tradable financial instruments—the forex marketplace does not have a fixed exchange. It is primarily traded through banks, brokers, dealers, financial institutions, and private individuals. It is known as an Over the Counter (OTC) market.
For the retail client, trades are generally executed over the Internet. The market has generally required large deposits and high account margins that have precluded smaller investors, but in the last few years, such investors have been able to access the forex marketplace. With the advent of the Internet, and with growing competition, it is now easily within the reach of most investors.