What is forex and how does it work?
Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $5 trillion.
If you ever travel abroad, you exchange currency in the country where you will travel instead of money.
If you look at the screen of the counter, you will see that $ 1 is equal to BDT 75tk. Your mind will be upset that you have to exchange so much money in exchange for so little. Later, when you see that 3 Pepsi is worth a few cents, you are happy again.
When you do this, you are participating in the Forex market. You exchange one currency instead of one currency. You exchanged dollars for money while travelling to America.
When you come back to the country when you change the dollar again, you will notice that the exchange rate has changed. With this exchange rate change, you can make profits in the Forex market and make money.
The Forex Exchange Market, commonly known as "Forex" or "FX" / "FX", is the largest financial market in the world. If you compare it to the New York Stock Exchange (NYSE), you will find that the NYSE trades at $ 22.4 billion daily, and the Forex market trades at about $5.1 trillion daily.
You hear the news on NYSE, CNBC, Bloomberg or the BBC about the market. They talk about the stock market basically. That's what the market looks like.
But comparing it with the Forex market, you can see how big the market really is. The graph below will give you ideas.
Average Trading Volume
The forex market is about 25 times larger than other stock markets. But there's another father here. $ 1 trillion is the size of the worldwide forex market.
Retailer traders mean that the people we trade in the Forex market, it is estimated at $ 1.5 trillion. Then you see that the Forex market is bigger than the stock market in Eminem.
Now curious about the market? Let's go to the next exercise.
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