INTRODUCTION TO FOREX TRADING

 

The foreign exchange market, or forex (FX) for short, is a decentralized market place that facilitates the buying and selling of different currencies. This takes place over the counter (OTC) via the interbank market instead of on a centralized exchange.
Without knowing it, you have probably already participated in the foreign exchange market by  buying good from different online platforms . 

Currencies are traded in the foreign exchange market, a global marketplace that’s open 24 hours a day Monday through Friday. All forex trading is conducted over the counter (OTC), meaning there’s no physical exchange (as there is for stocks) and a global network of banks and other financial institutions oversee the market (instead of a central exchange, like the New York Stock Exchange).

Up until the mid-1990s, the currency markets were slow. Getting an accurate price required an army of brokers and traders but the mid to late 1990s brought the internet and advances in communication that changed everything.

The currency markets became more sophisticated and convenient. Banks created their own trading platforms and retail brokers introduced internet-based trading platforms for individuals. Currencies were no longer shut off in political systems and emerging markets like those in Southeast Asia thrived.

Forex has a long history and its future holds much potential for success. Already, digital currency trading is growing and many technological advancements are taking place and presenting perpetual opportunities for forex traders.