FOREX, ever heard that word before? You must have since its become a very popular marketplace online. Well anyways here it is, FOREX is the name given to the Foreign exchange market. Quite interestingly the first three letters of FOREIGN and the first two letters of EXCHANGE combined make up this new word FOREX. Now that you know what FOREX stands for and that it is the Foreign Exchange marketplace, you probably will be thinking so what' Whats the fuss all about? Get ready for this marketplace is BIG!! The FOREX or the Foreign Exchange market is the biggest market in the world, it has a daily turnover of $1.5 trillion. Read that again, a DAILY turnover of $1.5 trillion, and at the same time its the only market that is predicted to keep increasing in size for the future. This incredible turnover is much greater than the combined turnover of the New York and London stock exchange on any given day. The Reason the FOREX exists is because countries, governments and large institutions need to do trades between each other and they need to be paid with their local currency. Another reason is because of YOU. Let me explain why Im pointing at you in particular, if you ever went on holiday to another country, the you probably needed to do some currency exchange to the local currency of that country you spent your holiday in. So you see the FOREX will always exist and as technology and communications become faster and more efficient international trade will increase, therefore always being a need for the FOREX market to exist. |
