Trading

Forex Trading

The Foreign Exchange Market, or Currency Market or Forex, is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, such as multinational corporations which must pay wages and other expenses in many nations. However a large part of the market is made up of currency traders who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.

Unlike stocks and futures exchange, foreign exchange is an interbank, over-the-counter (OTC) market which means there is no single universal exchange for any specific currency pair. The foreign exchange market operates 24 hours per day throughout the week between individuals with Forex brokers, with banks, and banks with banks. If the European session is ended the Asian session or US session will start, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets.

Individual currency speculators can work during the day and trade in the evenings, taking advantage of the market's 24 hours long trading day.