Commodity Forex Online Trading is the world’s largest financial trading market, with volumes of around $2 trillion a day. It is the core of what was initially known as the foreign exchange market, also known as FX, Spot FX or simply Spot.

How Big Is Online Forex Commodity Trading? Well, if you consider that the trading volume of the New York Stock Exchange is “only” 25 billion per day, then you realize how big the online commodity Forex trading market really is! In fact, it’s three times larger than the stock and futures markets combined! Now how big is that!

But what do Forex traders trade in the foreign exchange market? The answer to that question is simple: Money! Forex Trading is the act of trading one currency against another. A trader may decide to sell some of the US dollars he owns and buy Japanese yen. This simultaneous exchange of currencies is therefore the core of online Forex commodity trading. Because two currencies must be involved in any trade, they are called pairs. For example, the euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).

In the old days, when the barter economy formed the basis of daily exchanges, the value of one product was estimated against that of another, and a trade was made based on that estimate. This analogy is still valid for the online commodity Forex trading market, with the difference that the estimation of one currency against another is based on the global market value of these currencies and not on the estimation of a few individuals.

Online commodity Forex trading actually means that when one currency is sold to make way for another, the forex trader is actually investing in the economy of the country, the currency he is buying, and in doing so, is effectively buying a “share in the economy of that country. In our example, a trader buying Japanese yen does so in anticipation of the market’s assessment of the current and future health of Japan’s economy.

Other things being equal, the exchange rate of one currency against the other reflects the condition of the economy of each country. The economy of a country is dictated by internal and external forces, such as war, drought, political stability, civil unrest, etc. The flow of currency from one country to another results in large part from such events.

The online commodity Forex trading market is unlike any other financial market, not only in its size but also in the fact that it does not have a physical location or a central exchange, unlike the New York Stock Exchange. York, for example. As such, Forex Trading is considered an over-the-counter (OTC) market in the sense that it is limitless and independent of any central bank or institution. In a nutshell, Commodity Forex Online Trading is run electronically over a giant network of computers. Within a network of banks, continuously, 24 hours a day.

It used to be that until the late 1990s, Forex Trading was only available to the big players who had to have an initial working capital of millions of US dollars before they could trade. Largely the exclusive domain of bankers and large financial institutions, there was no room for the small ones. The rise of the internet has been such that online commodity Forex trading companies are now able to offer trading accounts to smaller mom and pop retailers.

These small and often inexperienced traders can quickly become experts in the commodity Forex online trading business by using expert forex trading software like Forex Killer.