What Is Forex Trading

*What is Forex Trading?*

*What is Forex?* This is a question I get asked all the time. Usually when I meet new people and I tell them what I do, they, have no idea what Forex trading is. It’s quite surprising considering just how big Forex is.

With over $5 trillion traded daily, it overshadows all other financial markets.

Simply put, Forex is an abbreviation of “ *foreign exchange”.* When one currency is changed for another, it is a Forex transaction.

Those currency exchange booths at the airport. When governments import or export goods. Even when you buy something online from another country.

These are all foreign exchange transactions. A huge amount of transactions occur every day, that’s why Forex’s daily turnover is as high as $5 trillion.

A large portion of the daily volume traded through Forex is speculative. Speculation is what you are doing by trading on the Forex market.

You picked a great market to trade. Forex trading is unlike any other financial market in the world:

*24 hour trading, 5 days a week.* The ability to profit in rising or falling markets *Leveraged* trading with low margin requirements.