What is FX (aka Forex)?

For those who are new to investing, it can be overwhelming to learn about all the different opportunities that await them. One of the options is FX, or Forex, investment.

About the Forex Market

Entering into this type of investment platform means that the new investor is about to participate in, what is called, the most liquid market there is when it comes to this form of trading. The term “liquid market”, means it is an investment platform that is made up of huge bids and offers. It is comprised of low spreads, along with minimal volatility. The benefits of the Forex market is that trades can take place quickly at acceptable prices because there is a lot of involvement from both buyers and sellers. The Forex market is one in which the trade is comprised of currencies.

Largest Market in the World

There is no shortage of activity when it comes to the Forex market. This is an investment market that can be tapped into at any time during the five days of the working week, but not during holidays. What makes this the most significant market globally, is because of the total amount of cash value being traded, and it is open to the entire world.

Foreign Exchange Market

The markets that deal with the Forex transactions are usually located in areas that are considered to be significant financial centres, and these can be found in many parts of the world, including New York, London, Singapore or Sidney, just to name a few. Trading takes place in the “over the counter” concept, which means perhaps through a dealer network, and has nothing to do with trading on a centralised exchange, like the stock markets.

Those that are interested in becoming involved in Forex trading should at least learn the basics about it first, then venture into this slowly, until becoming more comfortable as an investor.