27/05/2021
Its a great advantage to understand something before going into it.
Most common Things you should know about the forex market.
※ The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion being exchanged.
※ The risk of loss in trading Foreign Exchange (FOREX), indices and commodities can be substantial.
※ The forex market allows participants, including banks, funds, and individuals, to buy, sell or exchange currencies for both hedging and speculative purposes.
※ The forex market is made up of two levels: the interbank market and the over-the-counter (OTC) market.
※ Most of Forex trading happens in the spot FX market, which is different from the futures market, in that currencies are physically exchanged in real-time when a transaction is made. Whereas in the futures market, the date the trading price is determined and the date the currency is exchanged are different.
※The Forex market is a legitimate trading market where the world’s currencies are traded. It is not a scam in itself. Without the Forex market it would be difficult to trade the currencies needed to buy imports, sell exports, to go on holidays or do cross border business. However, with high leverage positions which, in theory, have the potential to make traders a lot of money and because there is no centralised/regulated exchange, scammers take advantage of the situation and the inexperienced traders desire to enter the market.
