Forex what is this ?

Everyone in his lifetime traveled to another country. If you aren't living in Germany and only traveled to France there is the possibility that you might needed to exchange your currency. Some people do it at the airport some at the bank and others at a secret place where no one will ever know.
In every bank you see that huge board where you see the different rates. And than you realise that every currency has its own number or value. For example the Yen might be 80. Your emotions start to grow and you are feeling like Bill Gates. You start to calculate, you have 100$ in your pocket that would give you 8000 Yen! You are rich! But wait... you arrive at the Airport in Japan and you only wanna buy a Coke. And what you see ? It costs you 500 Yen. Well at least after your first shopping tour you realise that you might be not that rich as you seemed to be in the first place.
What you probably didn't realise is the fact that when you changed your money you ALREADY participated in the forex marked! You exchanged one currency with another. 
You are coming back from your flight from Japan and you still have some money in your pocket and because you can't use it anymore you need to change it back. But what do you see ? The rates changed. And exactly these changes are the ones who interest the guys who trade foreign exchange.
The foreign exchange market, which is usually known as "forex" or "FX," is the largest financial market in the world. If you watch TV you always see the Stocks exchange NYSE or something else. But what you didn't know up to know is the fact that the FX Market is muuuuuuuuch bigger than the NYSE. Currently daily volume of the New York Stock Exchange is around $80 billion. Now that sounds really much but the daily forex volume is around $4 TRILLION.
Because the human species has problems to compare numbers, or at least I'm the only one whatever the images of monster seems legit to see the difference better. This one is the NYSE.

That monster looks pretty big. But lets compare it with the FX market. And all the sudden it looks a little different...
Ops... Looks like the fat "harmless" monster could easy bash the NYSE. But perhaps some people might wanna see it a little different than in monsters. Perhaps you like some excel graph:


Now that looks nice. So much potential money. But hold your little horse. The entire $4 Trillion covers the entire global market. Private traders are not able to trade in the whole market. We only have access to a little part of it. But the little part is $1.5 trillion. So its still bigger than the NYSE and all the others together. 
That's still not everything you need to know. So don't dream already from your new lifestyle. Keep on reading and find more about Forex!


>>Click here to get to the next article<<


Penulis : KalOo ~ Sebuah blog yang menyediakan berbagai macam informasi

Artikel Forex what is this ? ini dipublish oleh KalOo pada hari 31 May 2011. Semoga artikel ini dapat bermanfaat.Terimakasih atas kunjungan Anda silahkan tinggalkan komentar.sudah ada 19 komentar: di postingan Forex what is this ?
 

19 comments:

  1. Should make a series fof children's books based on your blog.
    Vol. VII: House Bubbles

    ReplyDelete
  2. lol couldnt help but laugh at the pics xD

    ReplyDelete
  3. Yeah, great pics lol. I look forward to reading more about Forex trading.. I wonder how much and how quickly the value of currency fluctuates..? I look forward to your next posts, and hope you keep throwing in illustrations! xD

    ReplyDelete
  4. Damn, economy sure is scary! :D

    ReplyDelete
  5. wow, this is an awesome blog. definitely will be following daily

    ReplyDelete
  6. Wow haah that is crazy, I wonder if you could exchange at certain points and create a profit off what you had exchanged previously if the rates vary.

    ReplyDelete
  7. Wow I didn't know this about Forex. Informative post.

    ReplyDelete
  8. Wow, awesome introduction to the Forex market. I have very limited financial expertise, so this was refreshing and easy to ready. Great visuals too, lol. +followed

    ReplyDelete
  9. I used to import things and be a reseller. Forex can help me in that?

    ReplyDelete
  10. Very informative, didn't know all that about Forex. Some useful tips there :D

    ReplyDelete
  11. I'm sticking with NYSE... But i was always curious about Forex and there's some very useful info in here.

    ReplyDelete
  12. Pretty good explanation! I kinda see Forex investing like casino gambling only with a lot more factors to take into consideration before putting money on the line!

    ReplyDelete
  13. It's always seem interesting to me this whole thing of forex trading, sometimes i feel like it would take way too much time and you need a BIG investing sum to start... am I correct?

    ReplyDelete
  14. That is INSANE. I need to read more and invest in this.

    ReplyDelete