What forex currency trading is all about and why it is so popular?

Forex currency trading - if you have any sort of knowledge about trading, you have probably heard about forex. This, while seemingly a new market, is actually an older market. It has been around since the 1970's and actually this markets existence is owed to the actions of then President Richard Nixon, who took the U.S. dollar off the gold standard. Now that the dollar was backed by faith in the government rather than gold, it could be traded. But the real question is what forex market is all about.

Forex currency tradingThe answer to the question, what forex market is all about on one hand is very simple. Conversely, there are parts of it that can get a little confusing and technical. The simple part is that the forex market is a trading market that trades one currency over another.

Forex currency trading – what can be traded

In the forex currency trading market, you can trade the U.S dollar or the USD against the British pound or the Yen against the Euro and so on. Whichever one you feel is stronger, that is the currency you want to trade for. Whichever currency you feel has a weakness, that is the one you want to trade against. The prospects are virtually limitless.

Unlike forex in the past, forex has become a market for everyone. In the past, only the super wealthy and the big banks and corporations could trade in forex. Today, an investment as small as $50 will get you a trading account.

Another factor in what forex currency trading is all about is that with the 24-hour nature of the forex market and the fact that the only trading floor is a virtual one. This combined with the fact that trades are normally completed in 1 to 2 days at the most, the forex market is the big daddy of trading markets.

For example, stock market trades are an estimated $25 billion dollars per day. However, the forex market trades over $5 trillion dollars per day. What this does is makes for an excellent environment for earning spectacular profits.

There really isn't any mystery about why forex is so popular. The trades are short, the hours are just about around the clock, all you need is a computer and $50 and you are ready to go. In addition, with leveraged trading, you can trade up to 200 times your account value. All this makes for very good reasons why forex currency trading is the big deal right now as far as trading goes.

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