What Is Forex Market? Everything You Must Know About Forex

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WHAT IS FOREX MARKET?

• WHAT IS FOREX MARKET WHAT ARE ITS COMPONENTS?

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INTRODUCTION

• The Forex market is essentially a place where the
  trading of global currencies happens. In this
  market, currencies that belong to various
  countries will be bought and sold on a large
  scale. 
• The novice trader needs to know 'what is Forex'
  and all of its components. Traders should be well
  versed in the fundaments of the market before
  trading it. Hence, in the interest of our
  readers, we have presented all the basics of the
  Forex market in this article, which includes the
  size liquidity, components, types, etc. Also,
  we have discussed the reasons why you should
  prefer trading the Forex market over other
  financial markets.

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WHAT IS FOREX MARKETS SIZE LIQUIDITY?

• The Forex market is decentralized as it doesnt
  have any central exchange or physical location.
  For instance, the US Stock Market has the New
  York Stock Exchange, which is a real place where
  all the deals are done. The same is the case for
  Tokyo and London stock exchanges. But when it
  comes to Forex, the entire market is run by a
  network of banks, electronically. The
  transactions occur online, and traders get to
  speculate on the market 24/5 as long as they have
  an active internet connection (except for the
  weekends). These are some of the reasons that
  contribute to the Forex markets high liquidity.
  The daily trading volume of the Forex on an
  average is whopping 5.3 Trillion. 

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WHAT IS FOREX MARKETS HIERARCHY?

• The hierarchy of the Forex market is given below
  based on their contribution to the Forexs
  trading volume.
• International Government Banks Large Commercial
  Banks
• Electronic Brokerage Services
• Medium - Small Sized Banks
• Retail ECNs
• Global MNCs
• Retail Traders

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TYPES OF FOREX MARKETS

• Types of Forex Markets
• Spot Market
• Futures Market
• Options Market
• Exchange-Traded Funds

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PROS OF TRADING THE FOREX MARKET

• There are many advantages of trading the Forex
  market over any financial market. Relatively
  lower trading fee is one of the major reasons why
  traders prefer this market. A lot of fees that
  are involved in the stock market like clearing
  fees, brokerage fees, etc. can be eliminated
  while trading the Forex Market. Apart from the
  fee, High Liquidity, Leverage Trading, 24-Hour
  market, Variable Lot Sizes are some of the many
  pros that are involved while trading the Forex
  market.

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