What is FOREX?

Most people have no idea what the FOREX is and how it affects their life or the fact that they probably already have participated in it.

 There is a good reason for this. It wasn’t until about ten years ago that the general population even had access to this dynamic market in terms of being able to open an account and trade it.

Before that, only major banks, multinational corporations and the mega wealthy had access to the speculative opportunities FOREX had to offer and funding a trading account often required one million USD or more.

Even though the general population did not have the opportunity to trade this market, as you will soon discover, we all participate in it whether we realize it or not.

Just recently, the internet has made it possible for the “little guys” like you and I to participate in the world’s biggest financial game.

Twelve years ago it would cost you a million or more dollars to participate with the big boys in this lucrative trading game, today you can open a trading account for just a few hundred dollars.

Few opportunities today offer so much reward for so little risk and for this reason people are flocking in droves to get their share.

Remember this!! - Most people lose money trading on the FOREX because they don't educate themselves on how the market works.

If you play this game like a lottery, expecting to win with luck and good fortune, you will loose all of your money. You may get lucky for awhile but just like Las Vegas, in the end the “house” wins and you end up broke.

After all, you are up against players like the Federal Reserve Banks, Bank of America, mega multinational corporations, governments of countries around the world and super savvy investors like George Soros, do you really think these high stakes players trade by merely guessing? Of course not!!

 The ONLY way to become a successful trader is to educate yourself on how this game is played.

You will still be speculating because no one truly knows which way the market will go next, but the difference will be that your "betting" or "trading" will be "educated" and this can tilt the odds ever so slightly into your favor.

Lets start at the beginning…

The FOREX is the world’s biggest financial market.

The FOREX or “FOReign EXchange” is the planets biggest most liquid financial marketplace hands down.

Here is the Federal Reserve's easy to understand explanation of what the Foriegn Exchange is:

“Foreign exchange” refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money denominated in another nation’s currency acquires foreign exchange.

That holds true whether the amount of the transaction is equal to a few dollars or to billions of dollars; whether the person involved is a tourist cashing a traveler’s check in a restaurant abroad or an investor exchanging hundreds of millions of dollars for the acquisition of a foreign company; and whether the form of money being acquired is foreign currency notes, foreign currency denominated bank deposits, or other short term claims denominated in foreign currency…

 " Foreign exchange can be cash, funds available on credit cards and debit cards, traveler’s checks, bank deposits, or other short-term claims. It is still “foreign exchange” if it is a short-term negotiable financial claim denominated in a currency other than the U.S. dollar.” – Sam Cross – The Federal Reserve Bank

So now you can see why the the exchange of foreign currency is the planets biggest business.

In fact no other market even comes near the gargantuan size of this market. More money changes hands in the FOREX every day than all other markets on earth combined.

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