The word FOREX consists of the abbreviation of the words ‘Foreign’ which means (foreign) currency and ‘Exchange’ which means buying and selling (currencies) in English. In order to grasp the meaning of the term Forex Trade, first we should discuss the concepts of Forex and Trade. Forex literally means currency swap. However in the Forex market, many products such as oil, gold, silver, coffee, wheat can be traded in addition to currencies of different countries. When the words Exchange (also referring to short-term trading in the stock market in Turkish) and Forex come together, the term is used to emphasise a market that deals with probabilities.
Today, Forex Trading has become a rising trend, as the opportunities offered by the Forex market create an attractive power for traders (investors). Some traders choose to take part in Forex Trading because they can invest 24 hours a day, 5 days a week without restrictions while others can invest with minimal risk thanks to limited order types.
Forex Trading has a wide variety of investment instruments. For this reason, Forex Trading is a convenient platform for traders with budgets of all sizes. Thanks to this feature, the trading volume of the Forex market is predicted to be around 7 trillion dollars per day. Since this amount also means very high liquid flow, the expectations of the traders are met quickly.
Since Forex is a global market, it offers the opportunity to trade from any country in the world to another country’s stock exchange over the internet in as little as seconds. In addition, the ability to make leveraged transactions is a unique feature of Forex Trading.