Welcome to Celestial Trading Tools Educational Blog.
Here you will find interesting and useful blog posts relating to forex education ranging from the very basics of forex right through to the more intricate complexities of this constantly changing and evolving marketplace. In this issue of the Celestial Educational Blog we are going to be taking a look into exactly what forex is. Without further ado lets continue.

Forex is the largest and most liquid market in the world. With an estimated daily turnover exceeding $5 Trillion. No other market comes close to the size and liquidity of the forex market, for comparison the stock markets estimated volume is around $200 billion per day. So, as you can see the Forex market dwarfs this and all other markets across the globe.

The forex market is a necessity for any form of international trade to occur. Before currencies we used to barter, offering a number of items as a trade for another specific item(s). You may have heard stories of medieval times when peasants used to swap fruit and vegetables or animals for other resources. However, since the invention of currencies it then became necessary to be able to still complete a fair trade and thus the foreign exchange market was born.

If you are new to forex you may be a little apprehensive about trading this market. However, I’m quite sure you probably have already completed numerous forex trades throughout your life already. Have you ever been on holiday maybe to the south of France or Spain? Possibly even further afield to the USA or even Australia? If you have, I’m sure you also went to your local post office or foreign currency exchange, or god forbid forgot to and needed to exchange some last-minute currency at the airport! Well if you did you just completed a forex trade at its core essence. Now obviously this isn’t quite the same as sitting behind a computer screen and logging onto your trading platform and selecting to long or short a specific currency pair but in essence you have completed a forex trade.

Without forex the worlds global economy could not operate. We would not have any perception of a specific currencies value and therefore could not even dream of importing and exporting goods. Without forex we would simply return to bartering, and I think we can all agree our current situation is far better than that of our ancestors. We also have the added bonus of being able to trade the forex markets from the comfort of our own home and having the potential to even make returns on our investments in this manner!

After reading this I hope you now have a better understanding of exactly what the forex market is and why we have it. If you wish to further your forex knowledge completely free of charge, then ensure to return to Celestial Trading Tools Educational Blog for more free educational content!

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading spreads bets and CFDs. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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