The foreign exchange is much different than the stock market in a few ways. What is the foreign exchange? It’s also known as the FX as well as the forex market. The stock market is based based on businesses and products that are within one country, while the forex is international and takes it a step further to include many countries.
The stock market has a set amount of hours that it’s open each day, typically Monday through Friday, during normal banking hours. Because of it being based in one country, it’s closed for holidays as well as the weekends. The foreign exchange is basically open twenty four hour a day except for about one day on the weekend. That’s because there is at least a few countries that are doing business at any given time.
When the foreign exchange started in the early 1970′s, it consisted of trading and selling currencies. Trading that takes place between two counties with different currencies is the basis for the forex market and the background of the trading in this market. There are trillions of dollars traded on a daily basis on the foreign exchange. The forex market involves governments, banks, financial institutions and those similar types of institutions from other countries.
What is bought and sold on the foreign exchange can be easily liquidated, that’s because that the equities are currencies. No matter what your position is in, it can be turned into your country’s currency rather quickly.
Forex is an area I am learning about and will start to invest in this year. As always, I’ll share my experiences here, both the positive and the negative.
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I using Forex Autopilot and the pips result just awesome!
great summary of forex for the beginner like myself!
Twitter: joannegreco777
says:
Thanks for the comment. My whole idea of this site is to help beginners as well as other seasoned traders.
Great summary about what forex trading is all about. Thank you for sharing. I believe many forex beginners will benefit from this post.