The daily trading volume on the forex market dwarfs that of the stock and bond markets.<\/p>
According to the latest triennial survey conducted by the Bank for International Settlements<\/a> (BIS), trading in foreign exchange markets averaged $7.5 trillion per day in April 2022.<\/span> By contrast, the total notional value of U.S. equity markets on Dec. 31, 2021, was approximately $393 billion.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is Foreign Exchange Trading?",
"acceptedAnswer": {
"@type": "Answer",
"text": " When you're making trades in the forex market, you're buying the currency of one nation and simultaneously selling the currency of another nation.<\/p> There's no physical exchange of money. Traders are taking a position in a specific currency, with the hope that it will gain in value relative to the other currency.<\/p>"
}
}
,
{
"@type": "Question",
"name": "How Does the Forex Market Differ From Other Markets?",
"acceptedAnswer": {
"@type": "Answer",
"text": " The Forex is a decentralized market<\/a>. It has no physical existence and no owner or management.<\/p> There are no clearing houses or central bodies to oversee the forex. That means traders aren't held to strict standards or regulations, as are seen in the stock, futures, or options markets.<\/p> It also means there are fewer fees and commissions to pay.<\/p>"
}
}
]
} ] }
]