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The foreign exchange (forex) market is a continuous global exchange where currencies are traded. It is the largest, most liquid market in the world with an average trading value in excess of $1.9 trillion per day. With no central marketplace for currency exchange, forex trading is conducted over-the-counter, with currencies being traded among the major financial centres worldwide, 24 hours a day, five days a week.
One of the purposes of forex trading is to earn profits from foreign currency movements. Forex trading is always done in currency pairs, two currencies which make up an exchange rate.
There are various different methods of forex trading. These include spot, forward and futures.
Historically, forex trading was limited to banks and financial institutions. However, with the advent of the internet and the impact of new technology, forex trading has been made readily available to all traders at all times and in any part of the globe.
The days of foreign exchange trading being exclusively the domain of major bank employees are over.
Today, those involved in forex trading include parties such as corporate hedgers, car manufacturers and oil producers. Alongside these are foreign exchange mortgage managers and offshore brokerage firms such as Berkeley, which can advise the private investor.
The continuing growth of the foreign exchange market is dependent on the automation of systems, which permit trading to be conducted anywhere in the world at any time and virtually eliminate the losses which are often experienced with manual systems.
The private individual can access the foreign exchange market using sophisticated financial trading systems, which allow them to compete with the industry’s major players.
Berkeley (Bahamas) offer private investors offshore access to foreign exchange trading through a specialised online forex trading platform. We also offer a comprehensive telephone based service.
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What is Forex Trading?
