Forex stands for Foreign Exchange. FOREX simply means the currency market worldwide where you can buy and sell currency. It is managed by FXCM Markets merchants as well as banks all over the globe.
Forex market was only available to high-net-worth individuals, conglomerates, and investment institutions prior to 1996. For entry into the market, USD10,000,000 is required as initial capital. Forex market is not very popular among investors, as they cannot make an investment in the market. The daily trading volume of Forex market was also lower at USD500 million per hour.
After Bill Clinton’s approval, the Forex market is opened to public trading in 1996. Forex brokers have been growing rapidly over the years, and trading volume keeps increasing. Forex is now the biggest daily trading market. The trading volume is USD3 trillion daily, far more than any stock exchange volume worldwide. It is also four to five times greater than the US Futures markets volume.
FOREX markets are so significant that they can downgrade an economy in a matter of seconds. Many countries from Asia such as South Korea (Thailand, Indonesia), Singapore, Malaysia and Singapore were affected by the 1997 currency crisis. George Soros was one major player that has benefited from more than USD1Billion within a blink of an eye during that crisis.
A decrease in competition from Forex brokers via the Internet has led to an increase in minimum capital requirements to open an accounts. Open an account to start trading currency with USD250 as your initial capital.
The Forex market can be accessed 24 hours per day, and non-stop for 5 full days per week. Forex trading can take place in either a bull or bear market. If you have the right knowledge, either way can bring in money. Forex trading is not subject to commissions like stock market. High leverage allows traders with little capital to trade on the Forex market.