FOREX was formed by shortening the words “Foreign Exchange” as the word structure. In financial terms, the Forex market means “the market in which the currency of one country and the currency of another country are exchanged.”
Forex or FX, abbreviated as Foreign Exchange, means exchange of words. The definition of Forex is used to refer to the whole of the international markets in which one country’s currency is translated into another country’s currency and foreign exchange is traded.
The daily trading volume of the forex market, the world’s largest market, is about $ 5.3 trillion daily, according to the BIS (Bank for International Settlement) report published every three years. $ 1.5 trillion of these transactions are carried out by individual investors. If you consider that the daily trading volume of NYMEX, the world’s largest stock exchange, is approximately $ 22.5 billion, you might have an idea of the size of the forex market. In addition to currency trading in the Forex market, you can trade commodities such as gold, silver, oil, and futures contracts defined as CFDs.
There is no single trading centre for the forex market, which is open 24 hours a day, and it is an over-the-counter (OTC) market with this feature. Transactions from all over the world can be exchanged in financial centres such as London, New York, Tokyo. Transactions of central banks, commercial banks, institutional investors, hedge funds, insurance companies, international institutions and individual investors make the forex market the most liquid market in the world.
With high trading volume and liquidity, you can trade on the forex market at low costs. Since the early 90s, with electronic communication networks and intensive technological infrastructure, all investors can access their accounts online at any time of day and manage their portfolios as they wish.
The intense and rapid variability between currencies has turned foreign exchange markets into profitable areas for investors. The forex market offers significant advantages to investors with its leverage, bidirectional trading,5/24 openness and wide range of products.