Money is a fundamental product. Anytime anyone buys or sells products and services in a foreign country, foreign currency trade comes into play. This is simply exchanging of one currency for another. Many people trade currencies for speculative purposes. Because hundreds upon thousands currency transactions go on every day, the foreign currency exchange market, also known as "forex" or "fx" market, is the largest market in the world. If you combined all of the U.S. stock markets, forex would still be bigger, with a daily trading volume larger than that of all the world's stock markets put together. Trillions of foreign exchange dollars are traded every day, and the forex market is growing at a phenomenal rate.
The Internet has played a gigantic role in the growth of forex trading. Before the Internet came along, only corporations and wealthy individuals could trade currencies in the forex market through banks. To open an account, you needed more than $1 million. Today, because of the Internet, investors can spend as little as a few thousand dollars and have access to the forex market 24 hours a day.
If you are in to trading, forex provides an alternative to the stock market. You can choose from thousands of stocks, but currencies are different, as there are only a few major currencies to trade like the Dollar, Yen, British Pound, Swiss Franc, and the Euro. Forex trading provides more leverage than stock trading, and the minimum investment is lower. Another advantage is forex-trading goes on 24 hours a day, so you can trade any time that is convenient for you ï¿½ day or night.