Why Forex is important?
Forex trading can be a daunting task for an inexperienced beginner. Most newcomers set some unrealistic goals when they get into Forex, and it adds to their frustration with Forex.
Here is one fact I want you to keep at the back of your mind, Forex Trading is not a get-rich-scheme. Knowing how the industry is mapped out is essential because the collective combination of all participants creates the market.
Forex is the world’s largest financial market, with over 5.09 trillion USD traded every single day. In a single day, more money will be traded in the Forex markets than Japan’s entire GDP! (Gross Domestic Product). Of these transactions, 254 billion USD is traded through CFDs and other derivative instruments.
Being the largest, most active financial market on the globe, it is also the world’s most liquid market, meaning it is easy for traders to enter into, as well as exit trades, and for the most liquid pairs, they can do so at a meager cost (even less than a single pip!). This also means that the Forex market is very volatile, creating many opportunities for traders to make a profit on both the positive and negative movements of currency pairs.