The Forex Exchange was established in 1971. This market grew at a steady rate throughout the 1970’s, but in the 1980’s Forex grew from trading $70 billion per day to over $1.5 trillion each day.
There are many huge players in Forex, but it is accessible to the individual trader. Each lot traded is worth approximately $100,000. By using leverage, an individual trader is only required to have a $1000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage.
The Forex market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. It is due to their great popularity in world’s commerce transactions and its high activity that these five currencies account for over 70% of North American trading.
There are no commissions charged on Forex, only a small transaction fee. This is not possible in any other market, as brokers charge a commission on each trade in all other markets.
Some More Facts:
- Forex is short for Foreign Exchange. It can also be called as currency or FX.
- Forex market is a kind of market that is non-stop. Its 24 hours trading, five days a week process.
- Forex market is unique because of its geographic dispersal.
- Forex market happens every time once currency is traded for another.
- Forex market is exceptional because of its trading volumes and the large number of traders in the market.
- After the training of Forex one should know the basics and principles of the Forex market; what is all about and who are the ‘players’ in the market.
- Should understand the movements of prices, timeframes of trading and the trends in the market that can influence your trade.
- At the end of the trading training, one should acquire a positive attitude of a soon to be big earner and a winning trader.
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