The foreign exchange market, also known as "forex", is the largest financial market in the world. Make a guess of how large this market is? It has $ daily average trade volume which is more than twice the GDP of IndiaThe forex market is an Over the Counter market with no physical location or exchange like BSE, NSE or NYSE. It runs electronically between banks over a 24-hour period. The reasons for trading in forex market can be one or all among speculation, hedging or arbitrage. Whether you are a large corporate giant planning to import machinery or a student planning to go abroad for studies or the finance minister, forex market has left no one untouched. The high volume, liquidity and leverage has attracted investors to use different ways of trading in forex market like spot, futures, options, and exchange-traded funds (or ETFs).
Some of the advantages of trading in forex market are: