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Forex


Definition

An over-the-counter market where buyers and sellers conduct foreign exchange transactions. The Forex market is useful because it helps enable trade and transactions between countries, and it also allows an investment opportunity for risk seeking investors who don't mind engaging in speculation. Individuals who trade in the Forex market typically look carefully at a country's economic and political situation, as these factors can influence the direction of its currency. One of the unique aspects of the Forex market is that the volume of trading is so high, partially because the units exchanged are so small. It is estimated that around $4 trillion goes through the Forex market each day. also called foreign exchange market.

Featured Tip

American Options vs. European OptionsWhen choosing forex options, make sure you also look to see if they are American-style options or European style options. American-style options give the trader the ability to exercise his or her opti ... Read more


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