Forex trading is all the rage, for good reason: it is possible for the average person to make a tremendous amount of money. This is largely because Forex trading offers an incredible amount of leverage, as much as 400:1.
Let’s take a look at Forex trading for the complete beginner and see if this is a viable wealth vehicle for you.
What is Forex?
Forex (FOReign EXchange) is the foreign currency market. It is actually the largest financial market in the world. The turnover is over $2.5 trillion per day, that’s more than 100x the Nasdaq turnover rate!
So with Forex trading, you’re not investing in companies, like with the stock market. Instead, you’re purchasing another country’s currency in the anticipation that it will increase in value relative to another.