Forex trading is one of the largest financial markets in the world, where currencies are exchanged between buyers and sellers. It is a decentralized market, meaning that there is no central exchange where all trades take place. Instead, trading occurs through a network of banks, brokers, and other financial institutions. The forex market is open 24 hours a day, five days a week, and is accessible from anywhere in the world, making it a highly liquid and popular market. In this article, we will explore the total amount traded on forex per day.
According to the Bank for International Settlements (BIS), the average daily turnover in the global forex market was approximately $6.6 trillion in 2019. This represents a 29% increase from the previous survey in 2016, indicating the growing popularity of forex trading. The BIS survey is conducted every three years and is considered to be the most comprehensive report on the size and structure of the global forex market.
The forex market is comprised of various participants, including banks, hedge funds, corporations, central banks, retail traders, and other financial institutions. These participants trade currencies for a variety of reasons, including hedging against currency risk, speculating on currency movements, and conducting international business transactions.
The majority of forex trading occurs in the major currency pairs, which include the US dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar, and Australian dollar. These currency pairs are highly liquid and widely traded, making them attractive to traders looking to profit from currency movements.
The forex market is open 24 hours a day, five days a week, with trading sessions starting in Asia and ending in North America. This allows traders to access the market at any time, making it a highly accessible and flexible market. The high liquidity of the forex market also means that traders can enter and exit positions quickly and easily, without having to worry about liquidity issues.
One of the reasons why the forex market has grown in popularity is the availability of leverage. Leverage allows traders to control a larger position in the market than their initial investment, which can increase potential profits. However, leverage also increases risk, as losses can be magnified as well.
In addition to spot forex trading, the forex market also includes derivatives such as options, futures, and forwards. These instruments allow traders to hedge against currency risk and speculate on currency movements in a more sophisticated manner.
In conclusion, the forex market is a highly liquid and popular financial market, with an average daily turnover of approximately $6.6 trillion in 2019. The market is accessible 24 hours a day, five days a week, and is comprised of various participants, including banks, hedge funds, corporations, central banks, retail traders, and other financial institutions. The availability of leverage and the high liquidity of the market make it an attractive market for traders looking to profit from currency movements.