Foreign Exchange Market


The term Forex is derived from the words ‘Foreign’ and ‘Exchange’ and quite simply means to take part in trades involving the exchange of one countries currency with another. Other terms often used to refer to Forex include ‘Spot FX’ or simply ‘FX’. The Forex (acronym for foreign exchange) currency market trades an estimated $3-to-$3.5 Trillion Dollars a day. Yes, that is correct, $3.5 Trillion a Day. It is the biggest and fastest growing liquid market on earth!
The Foreign Exchange Market was established in 1971 with the abolishment of fixed currency exchanges. The FOREX grew steadily throughout the 1980’s, but with the technological advances of the 90’s FOREX grew from trading levels of $50 billion a day to the current level of $3.5 trillion daily.
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