WHAT IS FOREX?
The Foreign Exchange market (also referred to as the Forex or FX market)
is the largest financial market in the world, with over $1.5 trillion
changing hands every day. That is larger than all US equity and Treasury
markets combined! Unlike other financial markets that operate at a centralized
location (i.e. stock exchange), the worldwide Forex market has no central
location. It is a global electronic network of banks, financial institutions
and individual traders, all involved in the buying and selling of national
currencies. Another major feature of the Forex market is that it operates
24 hours a day, corresponding to the opening and closing of financial
centers in countries all across the world, starting each day in Sydney,
then Tokyo, London and New York. At any time, in any location, there are
buyers and sellers, making the Forex market the most liquid market in
the world.
Whether you are aware of it or not, you already play a role in the Forex
market. The simple fact that you have money in your pocket makes you an
investor in currency, particularly in the US Dollar. By holding US Dollars,
you have elected not to hold the currencies of other nations. Your purchases
of stocks, bonds or other investments, along with money deposited in your
bank account, represent investments that rely heavily on the integrity
of the value of their denominated currency ¨C the US Dollar. Due to the
changing value of the US Dollar and the resulting fluctuations in exchange
rates, your investments may change in value, affecting your overall financial
status. With this in mind, it should be no surprise that many investors
have taken advantage of the fluctuation in Exchange Rates, using the volatility
of the Foreign Exchange market as a way to increase their capital.
Traditionally, access to the Forex market has been made available only
to banks and other large financial institutions. With advances in technology
over the years, however, the Forex market is now available to everybody,
from banks to money managers to individual traders trading retail accounts.
The time to get involved in this exciting, global market has never been
better than now. Open an account and become an active player in the largest
market on the planet. Discover the advantages of investing with CMS today!
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