What is Forex

24-Hour Online Currency Trading (Forex Trading)
Fluctuations of global currencies create numerous investment opportunities, which you, an individual or institutional investor, can take advantage of given a proper set of skills and instruments.

• What is Forex II?

  The Global Forex market is one of the largest markets in the world in terms of daily volume. Its trade volume varies from 1 to 3 trillion USD every day, which is 6-8 times higher than the volume in the stock exchange worldwide. The commodies traded on Forex are national currencies. The Forex market enables exporters and importers to engage in international trade, banks and financial institutions to provide sophisticated financial services, governments to implement policies, and tourists to travel. In essence, it is a truly global market, which operates around-the-clock and around-the-globe. The global nature of the Forex market, utilizing modern information technologies and financial services, enables private investors to participate in the market from their homes or offices via telephone or computer.

• How does Forex work?

  The Forex market is nowhere and everywhere. There is no central place where market players execute trades. Instead, Forex is comprised of currency transactions between banks, investment funds, Forex brokers and traders. Currency supply and demand and investors' expectations determine the market price of a currency. Some currencies also come under significant influence from Central Banks. The Forex market is a virtual market, which means that it is not followed by a physical delivery of currency.

• Is the Forex market risky?

  Forex is sometimes described as one of the riskiest financial markets. However, the volatility of currencies rarely exceeds 1-1.5% per day and risks are only high when unreasonable leverage is used. By choosing the leverage size traders actually determine their risks themselves. We do not recommend our clients use leverage higher than 1:5. The Forex market is a highly speculative market. Hence, the ability to analyze price bahavior becomes an invalubale asset for any trader.

• How is the Forex market different from the stock market?

  As a result of its global dimension, the Forex market is open 24 hours a day, which enables investors to correct their positions at any point in time. Given the large number of players, the Forex market has narrow spreads and virtually no price gaps. The lack of price gaps enables investors to count on non-slippage order execution. However, in a very volatile market the possibility for slippage exists.
  
  The large volume of participants also reduces opportunity for insider information. To put it simply, there has never been a case of complete currency collapse in a developed country. The volatility of leading currencies rarely exceeds 1% per day, in contrast to the volatility of stocks, which may fluctuate by up to 10% over one trading session. The Forex market generally provides more opportunities for leveraged trading (although a higher leverage size is associated with higher risks).