Forex Trading Guide

Forex Trading Guide
http://www.forexguide.us/forex-trading-guide

The foreign exchange (FOREX) market, the largest financial market in terms of liquidity and volume turnover, is where foreign currencies are traded. Foreign exchange trading, or forex trading, entails the exchange of one foreign currency with another foreign currency. There are some characteristics unique to forex trading that may guide an interested trader. Forex trading is different in some ways from that of other exchanges. Before going into forex trading, the interested individual should remember to study basic guides to forex trading.

Retail traders are relatively unfamiliar with the forex market despite its size because the forex market used to be dominated by the biggest financial institutions. This has been the case until internet trading became popular. The forex market is similar to the stock market and other commodities markets. However, there are some differences an interested trader must remember to guide him in future deals. First, the forex market is not regulated by any supervising body, unlike the stock exchange. There are also no clearing houses that guarantee trades. Another key difference that should guide those interested in forex trading is that there are no limits to the trader’s position, nor is there a ceiling in exchange rate pairings. Unlike stock exchanges and other securities exchanges, forex trading happens 24 hours a day. There is no insider trading in forex trading. Forex is a principals-only market so there are no middlemen to broker transactions.