Forex stands to represent Foreign Exchange. FOREX stands for Foreign Exchange. It is a currency exchange where you can trade and buy currency. FOREX merchants and banks manage the currency market around the world, check this out.
Before 1996, only high-net-worth individuals and conglomerates had access to the forex market. USD10,000,000 is the minimum capital required to enter the market. The Forex market is not popular with investors as they are unable to invest in the market. Forex market also traded less frequently at USD500 million an hour.
Bill Clinton has approved the opening of the Forex market to public trading in 1996. The number of Forex brokers has grown steadily over the years. Forex is now the most traded currency. The daily trading volume of Forex is USD3 trillion, which is more than any stock market volume anywhere in the world. It is also four- to five times larger than the US Futures Markets volume.
FOREX markets can quickly downgrade an economy. Many Asian countries, such as South Korea, Thailand, Indonesia and Singapore, were affected by 1997’s currency crisis. George Soros was one of the major players that benefited from more USD1Billion in less than a year during this crisis.
An increase in the minimum capital requirement to open an account due to decreased competition from Forex brokers over the Internet has resulted in an increase in these requirements. Start trading currencies with USD250 in your initial capital.
Forex trading is available 24 hours a day and 5 days a week. Forex trading can occur in either a bull and bear market. You can earn money with either a bull or bear market if you have the right knowledge. Forex trading isn’t subject to commissions as stock market. Forex traders can trade with high leverage even if they have little capital.