WHAT IS FOREX

The foreign exchange market, which is usually known as “forex” or “FX,” is the largest financial market in the world.
Compared to the measly $22.4 billion per day volume of the New York Stock Exchange (NYSE), the foreign exchange market looks absolutely ginormous with its $5.3 TRILLION a day trade volume. Forex rocks our socks!

Let’s take a moment to put this into perspective using a monsters…

The largest stock market in the world, the New York Stock Exchange, trades a volume of about $22.4 billion each day. 

You hear about the NYSE in the news every day… on CNBC… on Bloomberg…on BBC… heck, you even probably hear about it at your local gym. “The NYSE is up today, blah, blah”. When people talk about the “market”, they usually mean the stock market. So the NYSE sounds big, it’s loud and likes to make a lot of noise.

But if you actually compare it to the foreign exchange market, it would look like this…

Ooh, the NYSE looks so puny compared to the Forex market! It doesn’t stand a chance! 

The currency market is over 200 times BIGGER! It is HUGE! But hold your horses, there’s a catch!

That huge $5 trillion number covers the entire global foreign exchange market, BUT retail traders (that’s us) trade the spot market and that’s about $1.49 trillion. So you see, the forex market is definitely huge, but not as huge as the media would like you to believe.

Do you feel like you already know what the forex market is all about? We’re just getting started! In the next section we’ll reveal WHAT exactly is traded in the forex market.

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