About Forex

Forex is the international foreign exchange market. The name came from the portmanteau of FOReign Exchange – foreign exchange operations. The Forex market is one of the youngest financial markets (Forex has been functioning since the 70's). However, it is the largest in volumes and the most fast-growing market. The daily trading turnover on Forex amounts to about 4 trillion US dollars, which by 30 times exceeds the joined volume of all stock markets in the USA.

A distinctive feature of the foreign exchange market is its stability. It is a well-known fact that the main threat for any financial market is its meltdown, the fall of the stock index. However, unlike other markets (stock and commodity markets) Forex is protected by the specifics of its commodity - currency. If shares devalue, a financial collapse is inevitable. If the dollar falls, another currency will become stronger an the market movement more active. This is a good chance to generate additional profit for a trader. Unique stability of the Forex market is caused by the fact that currency is one of the most liquid and reliable trading instruments.

Another obvious advantage of Forex is a simple way of entering the market. Finding a reliable broker is not difficult since there is a great many of them on the market. The rest depends on the person who decides to join Forex.

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