What Is Forex
Today the currency exchange market (Forex) leaves all other world markets far behind in terms of trading volumes. For example, the daily turnover for securities is estimated at 300 billion US dollars, while Forex operates with turnovers of several trillions US dollars every day. But huge turnovers are not the only thing that makes Forex a very attractive market for investors.
There are many other benefits:
- it is a global market;
- it has a very high liquidity: currencies are bought and sold within few seconds;
- currencies change all the time, giving a real possibility to close a proper trading deal;
- you can make trading contracts 24 hours a day;
- all transactions are done very quickly;
- no commissions are taken when you make a contract (there are no exchange fees on Forex, because brokerage companies get revenue from spread on buy and sell rates);
Forex market was created in 1971-1976 as an interbank “tool” used for operating huge monetary assets between the countries. At that time the rate of one currency to another was defined by mutually agreed exchange rate.
Many years have passed and today Forex turned into one of the major income sources for the banks. Such renowned banking institutions as Citibank, Chase Manhattan Bank, Barclays Bank, Sosiete Generale Bank & Trust, ABN-AMRO Bank report to get their biggest revenue from currency operations.
Modern technologies made Forex accessible to all investors. Acceleration in transfer of monetary assets and supersonic informational exchange combined with latest technological inventions made it possible to trade on Forex even with small capitals (starting from $100). That is why Forex attracted a new wave of small investors and this surely increased the liquidity of this market.
Disclaimer: Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the forex market. Don’t trade with money you can’t afford to lose. This web site is neither a solicitation nor an offer to trade forex. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Moreover, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and your position will be liquidated and you will be responsible for any resulting losses. Investors are recommended to lower exposure to risk by employing risk-reducing strategies such as ‘stop-loss’ or ‘limit’ orders. COLOSCONSULTING SRL will not be held responsible for the reliability or accuracy of the information available on this site. The content provided is put forward in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by COLOSCONSULTING SRL Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
