Forex is the short form for the foreign exchange market, which is also known as the FX or currency market. The foreign exchange market is a global decentralized OTC market for trading currencies. It determines the foreign exchange rates for currencies. The market includes all aspects of buying, selling, and exchanging the relevant foreign currencies at current or predetermined prices. The market is called decentralized because there is no centralized location but instead it is an electronic network of banks, brokers, institutions, individual traders, etc. The largest foreign exchange markets are located in major global financial centers like London, New York, Singapore, Tokyo, Frankfurt, Hong Kong, and Sydney.
Foreign Exchange Market is Unique
The following characteristics make the foreign exchange market unique in comparison to others;
- Huge trading volume, representing the largest asset class in the world leading to high liquidity
- Geographical dispersion
- Operates continuously; 24 hours a day except for weekends
- Exchange rates affected by variety of factors
- Margin of relative profit compared to other markets of fixed income is low
- Leverage is used to enhance margins of profit and loss and with respect to the size of the account.
Differences Between Foreign Exchange Market and Other Markets
- Fees and Commissions– The unregulated market influences how brokers charge fees and commissions and how they vary. They make money by marking up the spread on currency pairs or by charging a commission
- Full access – Market is open 24 hours a day, you can trade at any time of day.
- Fewer Rules – Investors don’t have to follow strict standards or regulations as those in the stock, futures, or options markets.
Forex Academy List
A Forex academy is where people learn how to trade in the Foreign Exchange Market. They can learn the rules and ways to trade the market and become individual traders or trade on behalf of a company, bank, or institution. The following Forex academy list contains the best courses to learn forex trading;
- How to Find the Strongest Forex Trends
- “Forex Trading A-Z” from Udemy
- Stock Day and Swing Trading Course by 2ndSkies Trading
- Platinum Trading Academy
- One Core Program by Asia Forex Mentor
- Learn to Trade
- Forex School Online
- Six-Figure Capital
- A1 VIP Trading Community
Forex is a market where various national currencies are traded. It is the largest, most liquidated market in the world where trillions of dollars change hands each day. If interested in forex trading you should choose a course from the Forex academy list and become a successful trader.