What's New Here?

    Often we find a booth of currency exchange at airports whenever we travel to another country. Then we exchange the money which we have in our wallet. I have a great experience of currency exchange at airports. When we go to the counter we can see a screen displaying various exchange rates for different currencies. We see “Pakistani Rupees” and say in our heart, “WOW! I have 100 dollars in my pocket and my dollars have worth about 10,000 rupees. We think that we can be rich but when we go to a shop in the airport and buy a cold drink. The cold drink price is 5,000 rupees. O My GOD half of my money is gone.
    When we do this then definitely we have participated in the market of Forex. Because we have exchanged our currency. According to the terms of Forex an American is visiting Pakistan, we have sold dollars and bought Pakistani Rupees.
    Before going our home we stop at currency exchange booth to exchange the dollars again but what is this? Now exchange rates are different yes they have changed. We can make money in the foreign exchange market with these changes of exchange rates. In the world of financial market foreign exchange market known as “Forex” or “FX”.  The New York stock exchange (NYSE) trades approximately a volume of $22.4 billion every day.  Now please check the daily trading volume of New York Stock Exchange, Forex Market, London Stock Exchange and Tokyo Stock Exchange.

    According to this image we can analyze that the forex market is too much bigger. Approximately two hundred times bigger. This is really huge and awesome. But one thing we should keep in our mind. That big $5 trillion number covers the whole world foreign exchange market. But we retail traders to trade the spot market which is almost $1.49 trillion. So definitely, this market is big, but not as big as the media.

    I think after reading this article you have learned the basics of trading. What is currency market and how we can use this term in our country. In the next article I will explain what exactly we should trade in the market. Thanks for reading. 

    What is Forex

    Posted by Umair Butt No comments

    Often we find a booth of currency exchange at airports whenever we travel to another country. Then we exchange the money which we have in our wallet. I have a great experience of currency exchange at airports. When we go to the counter we can see a screen displaying various exchange rates for different currencies. We see “Pakistani Rupees” and say in our heart, “WOW! I have 100 dollars in my pocket and my dollars have worth about 10,000 rupees. We think that we can be rich but when we go to a shop in the airport and buy a cold drink. The cold drink price is 5,000 rupees. O My GOD half of my money is gone.
    When we do this then definitely we have participated in the market of Forex. Because we have exchanged our currency. According to the terms of Forex an American is visiting Pakistan, we have sold dollars and bought Pakistani Rupees.
    Before going our home we stop at currency exchange booth to exchange the dollars again but what is this? Now exchange rates are different yes they have changed. We can make money in the foreign exchange market with these changes of exchange rates. In the world of financial market foreign exchange market known as “Forex” or “FX”.  The New York stock exchange (NYSE) trades approximately a volume of $22.4 billion every day.  Now please check the daily trading volume of New York Stock Exchange, Forex Market, London Stock Exchange and Tokyo Stock Exchange.

    According to this image we can analyze that the forex market is too much bigger. Approximately two hundred times bigger. This is really huge and awesome. But one thing we should keep in our mind. That big $5 trillion number covers the whole world foreign exchange market. But we retail traders to trade the spot market which is almost $1.49 trillion. So definitely, this market is big, but not as big as the media.

    I think after reading this article you have learned the basics of trading. What is currency market and how we can use this term in our country. In the next article I will explain what exactly we should trade in the market. Thanks for reading. 

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