You’ve probably heard of forex, but maybe you weren’t sure what it meant.
The “for” in forex stands for foreign.
The “ex” in forex stands for exchange.
So forex stands for the foreign exchange market.
Another name for forex is the currency market.
Every country has their own currency and an exchange rate to go with it. If you were to take a trip from the United States to France, you would need to exchange your dollars for euros.
Currencies are bought and sold everyday by governments, businesses, banks, tourists, and forex day traders.
The foreign exchange market (forex) is the largest market trading $5.3 trillion dollars per day according to the 2013 report from the Bank for International Settlements (BIS).
$5.3 Trillion dollars per day provides a lot of liquidity in the market and a great opportunity for a forex day trader!