The other name for foreign exchange is Forex market or FX market in short. Trading that takes place between two countries with different currencies is the basis for the FX market and the background of the trading in this market. Foreign exchange is centuries old! But, the Forex Market as we know it today, was established in the early 1970s. This is one such market which is not based on any one business or investing but also on trading and selling of currencies. There are many differences that we come across between the stock market and the forex market, one such that I would like to mention here is that there are millions and millions that are traded daily on the forex market, almost two trillion dollars are traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and similar institutions similar institutions, and the general public (since 1986) from different countries. What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often at times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country. The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes a step further to include any country.
What's that you say...Forex??? And they trade MONEY? Say WHAAAA!!!??? Never heard of it. Sounds neato tho. And the cool thing is it's risk free. Darned old stock market will take all your money... I'm gonna hafta look into this Forex thing!