Forex is an acronym for Foreign Exchange. In short, FOREX is the world currency market to buy and sell currency by FOREX merchants and banks around the world.
Before 1996, Forex market is only open to members of the exclusive such as bank, investment institutions, influential individuals (high net worth individuals) and conglomerates. USD10 million initial capital is needed to enter the market. Therefore, Forex market is not popular among ordinary investors as they are not effort or allowed to invest in Forex market. Daily trading volume was also below than USD500 million per day.
In 1996, Forex market has been opened to the public market for the first time after it is approved by former United States President, Bill Clinton. Since then, Forex brokers have been growing like mushrooms and trading volume continues to increase over the years. Forex is now the largest daily trading market with trading volume reaches USD3 trillion daily which is far exceeding the total stock exchange volume in the world. It is also 4 to 5 times more than the US Futures market volume.
FOREX market is very significance that it can bring down an economy of a country in the blink of an eye. In 1997, many Asia countries such as South Korea, Thailand, Indonesia, Singapore and Malaysia have been hit with currency crisis. George Soros has been one of the major players that has benefited more than USD1 billion in the blink of an eye in that crisis.
Due to increasing competition from the Forex brokers in the Internet, minimum initial capital to open an account has become increasingly low. With the initial capital of USD250, you can open an account and start trade currency.
Forex market is open 24 hours a day and non-stop for 5 days a week. Forex trading is executed in 2 ways, either when the market up or when the market down. Both ways have the opportunity to make money provided you know how. Unlike stock market, Forex trading is also free of any commissions. It also provides high leverage that enable small traders to enter the market with small capital.
Combination of skill and experience in analyzing markets either in fundamental or technical analysis is a key to make huge profits and minimizing the risk of loss in Forex market. Many techniques and secrets have been revealed with the intention to allow traders to participate and enjoy the Forex wealth. Forex trading is a goldmine if you know the techniques and secrets behind it. Everyone who with or without financial background can succeed and take the advantage of the Forex wealth.