Forex Trading is 35 times bigger than NYSE with a record of $3.2 trillion in daily turnover. Foreign exchange, forex or just FX are all terms used to describe the trading of the world’s widely usedÂ currencies.Â It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The foreign exchange currency market exists wherever one currency is traded for another type of currency eg: US Dollar to Philippine Peso. Most forex trading is speculative, with only a few percent of market activity representing governments’ and companies’ fundamental currency conversion needs.
Unlike trading on the stock market, the forex market is not conducted by a central exchange, but on the â€œinterbankâ€ market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.
eToro revolutionized the Forex trading arena with a novel approach that broke through the old bank-like interface and brought it straight into the web2.0 style interface and community, allowing everyone to participate in the biggest and most exiting market of currency trading.