The foreign exchange market is by far and away the largest market in the world. On any given day the volume of shares being traded can be anything up to a trillion dollars. To put that into some form of perspective it would be worth remembering that this is more than the entire trading activity on all of the equity markets and bond markets globally put together!
In the past currencies have typically only been traded by professional investors and institutions but in recent years and through the boom in training courses, there are now more and more investors making a living from trading in the forex markets.
Of course you don’t need to speculate with this product. For example if you have a significant exposure to the US markets, you could use foreign exchange to hedge your position i.e. reduce your risk.
There are many benefits to foreign exchange including that it is a 24 hour global market and so ideal for investors who wish to trade part-time or when they come home from work. However FX is subject to leverage which means that you can potentially lose more than your initial investment value. In other words the risks can be high and you do need to be careful.
If you have never really considered investing in currencies before but would like to know more about whether it might be suitable to you, either as a stand-alone product or as part of an overall balanced portfolio come and talk to us.