Certainly everyone has heard of Forex trading and Forex market, but hardly everyone knows what is it.
Forex is an international currency market, one of the biggest markets in the world. Forex trading means buying and selling foreign currencies (based on the value of that currency at the particular time), more exactly it is currency trading. The thing is that since the rates of major currencies are constantly fluctuating a Forex trader can profit from that for example, by buying the currency at a lower price and later on selling it at a higher price. The main task of a trader is to receive the income from operations of purchase and sale of currencies on the Forex market. Well know when you know what is forex trading let’s go ahead and examine the market.
Almost every country in the world is engaged in forex trading markets. The major currencies traded in the market are the U.S. dollar (USD), euro (EUR), Japanese Yen (JPY), Pound (GBP) and Swiss franc (CHF).
The main participants of the Forex market namely are central banks, commercial banks and other large financial institutions (they are called market makers). However, private investors like you and me, also can participate in this market and extract profits from these operations, of course with smaller amounts – through intermediaries that are brokers.

Unlike promotional and futures exchange markets, in FOREX there is no single universal exchange for specific currency pair. Foreign exchange market operates 24 hours a day, during the whole week trading between individuals and Forex brokers, brokers and banks takes place. And in contrast to other markets here traders can react to the news when they show up, instead of waiting for the market opening, as in case of most other markets.


Each of your bargain in forex consists of two parts: the entry, or opening position (buy or sell a certain amount of currency at the current price) and the closing position, which is the operation inverse to the one you made when you open a position. That is, if you’re opening position, it was buying the euro, then closing the position you are selling the euro at the new price.

Forex market is potentially profitable, but the trading in Forex does not exclude a certain percentage of risk so you should make head of all forex trading strategies and techniques.

Photo credit to Dan Wiklund
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