WHAT IS FOREX?
A simple answer to, what is Forex? When one country trades with another, there is a need to exchange currency. The currency of one country is not accepted directly by another country. Rather the currencies are exchanged for value equivalents. This process requires the conversion of one currency to another currency. Forex – Fx is the market where you trade currencies. All the currencies of the world are inter-converted to destination currencies in the Forex market. This is also the place where you can buy and sell currencies to make profits.
No Central Market Place
There is no central market place to trade forex. Forex trading happens over the counter. Trading happens 24 hours in a day, 5 days in a week other than for declared holidays in the major financial centers of the world like London, Frankfurt, New York, Tokyo, Zurich, Hong Kong, Singapore, Paris, and Sydney.
Most Liquid Market
The answer to what is Forex from the liquidity point of view may be stated as follows, Forex is the largest market in the world with the highest liquidity when compared to all other markets in the world. There is no other market in the world that can ever equal the total value of cash traded in this market. Trading in the FX market involves exchanging currencies for current or determined prices.