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  • Beginner
  • Intermediate
  • Advanced
  • Completion
  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

What is Forex Continued… (QUICK FACTS)

Okay, now that I’ve explained how to make and lose money in the Forex Market and how we use it whenever we travel to another country, let’s get into some facts about the Forex Market itself.

The Stock Market is more glamorized than Forex, as Forex can be more volatile and less strict, but it is not bigger. A lot of people have the misconception that the Stock Market is the biggest financial market in the world, but let me let you in on a little secret: IT’S NOT. The biggest financial market in the world would be the Foreign Exchange Market!

Let me put it to you this way:

The New York Stock Exchange (largest Stock Market in the world) has an average trading volume of around 22 BILLION. That’s a lot of transactions!

The Forex Market has an average trading volume of 6 TRILLION. Yes, that’s with a T.

This just shows how much bigger the Forex Market is in comparison to the Stock Market! Although the currency market is bigger, don’t look at the 6 trillion number and think that number is there because of the U.S. (speculators, retail traders). The U.S. actually make up a very small amount of the overall Forex transactions that occur; roughly around 5%. Most of the volume comes from central banks, major hedge funds, corporations, and other larger financial institutions. We’ll come back to this topic again soon.

On top of being the largest market with the most liquid asset in the world, it’s also a decentralized market. What that means is there’s no central exchange, unlike the Stock Market, which has the NYSE, Nasdaq, and more. Buyers and sellers don’t need to meet at a traditional exchange because everything is done online! So although you’ll see a physical booth at the airport, you won’t see a physical Forex exchange as you would if you were in the Stock Market.

With the market being decentralized, the Forex Market is open Twenty. Four. Hours. A. Day. 5. Days. A. Week. 24 HOURS! That means no matter what time of the day it is, someone in the world is trading in the Forex Market. This essentially means you can set your own trading schedule. Whether you want to trade in the morning, in the afternoon, or at night after work, there’s no schedule on what time you HAVE to trade. The Stock Market is only open from 9-5, so you have to physically be ready for the bell when the market opens! EVERY. MORNING. Now while some people like trading every morning, there are others who like choosing what time to trade. With Forex, there is no bell to signal that the market is open. The market is open 24/5!

Side note: There are some benefits to trading at certain times over others, but we’ll get into that as we continue on throughout this course.