I have just thoroughly researched the Forex market and noticed that many Vietnamese people still have concerns about this. In fact, what is forex, and should you participate or not? These are quite common questions, especially since the financial market in Vietnam is still quite new.

First, what exactly is forex? It is the global foreign exchange market, where people trade different currencies. This market has existed for a long time, linked to international trade, but it is actually the largest market in the world with extremely high liquidity. According to statistics, the average daily trading volume reaches trillions of USD. Because of its massive scale, this market cannot be manipulated, which is quite attractive to investors.

Here’s what makes many Vietnamese people hesitant: what is the legal status of forex in Vietnam? In reality, the Vietnamese government does not license domestic forex trading platforms because they tightly regulate foreign exchange reserves. But this does not mean forex trading is illegal. Individuals can completely trade forex for investment purposes through reputable international brokerage companies licensed in countries where such activities are permitted. The issue only arises if you trade through a broker "licensed by Vietnam," because clearly, the government does not allow that.

Next, I want to share about the most traded currency pairs. According to data from the Bank for International Settlements, EUR/USD accounts for over 24% of daily transactions, followed by USD/JPY with 13.2% and GBP/USD with 9.6%. These pairs are popular because they involve the largest currencies and fluctuate based on economic factors from major countries like the US, Europe, and Japan.

There are five important factors that typically influence the forex market, which everyone should know. The first is the interest rate decisions from central banks, as interest rates are the price of a currency. The second is GDP; when GDP exceeds expectations, the currency value usually increases. The third is the Consumer Price Index (CPI) and inflation; these figures indirectly affect the currency’s value. The fourth is the unemployment rate, which central banks use to decide interest rates. Lastly, information from meetings of the open market committee can cause significant volatility.

Regarding trading hours, forex operates 24 hours a day, five days a week because there are trading floors in Sydney, Tokyo, London, and New York. Each has different opening hours, so you can trade at any time. Interestingly, each currency pair will have different levels of volatility depending on which market is active.

Should you trade forex? That’s a question many Vietnamese are asking themselves. What is forex that makes it so attractive? It’s because it’s a vibrant financial market with high liquidity, opportunities for significant profits, but also high risks. If you decide to participate, make sure to choose a reputable international broker licensed in countries where forex trading is permitted. Never trade through unverified or unclear platforms.

In summary, forex is a global investment opportunity, but it also requires knowledge, skills, and caution. Before starting, take the time to learn, understand the market thoroughly, and always remember that trading through reputable platforms is the most important.