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What is FOREX?

FOREX is the foreign exchange market or currency market. FOREX is the market where one currency is traded for another. It is the largest market in the world.

Some of the participants in this market are seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different countries. However, a large part of the market consists of currency traders. They speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take an advantage of even small fluctuations in exchange rates.

The most traded currencies in FOREX are Euro, US dollar, Swiss Frank, British Pound and Japanese Yen. Trading is not limited to those currencies; FOREX offers variety of currencies one can trade.

FOREX trading is done online. A person finds a FOREX broker, opens a trading account with the broker and deposits money. FOREX broker provides to a trader so called FOREX trading platform. It is an application, a working environment, where a trader buys and sells currencies, dealing online �he speculates to make money on the difference of currency rates.

In FOREX currencies are traded in pairs: EUR/USD, GBP/USD, AUD/JPY, USD/CHF.