The forex market is called as “Foreign Exchange Market”. It is a world wide decentralized over the counter financial market for trading currencies. Financial centers around the world functions as medium of trading between the different types of people from different places. Forex market is a financial market, in which wide range of buyers and sellers from different places trade around the clock with the exception of weekends.
Foreign exchange market main objective is to assist the international trade and investment by allowing the businesses to exchange currency between the two countries.
For example, one business in UK imports some goods from one of the USA countries, then the UK business pays the bill amount in the currency of USA, that is in dollars using the foreign exchange market. While paying the amount the businesses exchange the amount with certain currency exchange rate.
In foreign exchange market, one party buys certain quantity of one currency in exchange it pays the certain quantity of other currency.
Foreign exchange market began during the 1970’s. This market is better than the local stock markets. The following are some of the features of a foreign exchange market.
- The foreign exchange market is 24 hours market, with 5 days a week, exception on weekends.
- There is high liquidity in this market. Any time a trader can exit his positions.
- There is a demo account accessibility.
- In this market the trader need not to pay any commission to the third party.
- This market is purely based on the technical analysis.
- In this the trader can get two way trading benefits, that means the trader can get profits while the market is going up and down. The upward market is also called as bullish market and the downward market is called as bearish market.
Apart from the above features there are a lot more trading friendly features, which makes the forex market the best option for trading.