What is Forex?
The global financial market where you can trade currencies is called “Foreign exchange market”. It is also called Fx. Here the question arises that why do you need trade? Why do you need to exchange your currency? What is the use of exchange currency? Well, the answer is very simple. When you travel out of your country, you need to have the currency of that country. Every currency has a different rate. You have to check the current rate of your currency and the other currency that you intend to buy. Thus, you sell your currency to buy the currency of that country. For example, if a Pakistani visits U.S.A. he has to sell Pakistani Rupee and buy Dollars. As there is a huge difference between the rates of both currencies, he has to pay about 170000 rupees to buy just 1000 Dollars. It is the difference between these rates that enables you to make a profit in Forex.
Size of Trade:
Forex is indeed the greatest financial market. Its trade volume, approximately $5 trillion a day, clearly shows its popularity.
Timing of Forex:
Forex remains open around the clock. Its 24 hours a day service is another plus point. There is no closing time of forex. You can trade any time of the day or at night as well. It is a global market, so its business day starts with the trade in Wellington, and with the shift of day and night, it shifts around the world and ultimately ends in New York, while it again starts in Wellington. However, it remains closed on weekends. So the business days are Monday through Friday, which is another attraction. It allows you to relax at the weekend.
