The foreign currency trading market, known also as forex, is a trading market for simultaneously buying one currency and selling another.

Forex is the largest market in the world, with trades of over $1.95 trillion every day. This is more than three times of the total stocks and futures markets combined.

Even though it is the biggest market in the world, its size is all virtual and it does not occupy any physical center.

The forex market is run entirely through electronic means, and has no physical location, and so actual Foreign Currency Trading is done mainly through the internet.

People trade foreign currencies 24 hours a day 7 days a week.

Main Traded Currencies:

  • U.S. dollar(USD)
  • Euro dollar(EUR)
  • Japanese yen(JPY)
  • British pound sterling(GBP)
  • Swiss franc(CHF)
  • Canadian dollar(CAD)
  • Australian dollar(AUD)

Currency prices are determined by a variety of economical and political conditions, but probably the most important are interest rates, international trade, inflation and political stability.

Foreign currency traders analyze these statistics using two foreign currency trading systems: technical analysis and fundamental analysis.

An important aspect of currency trading is using the right measure to calculate your profits and losses. Without the right tools it will be harder to know the right currency choice to make at any given time.

Forex trading is  always dealt in currency pairs with the major currency pairs being Euro/US Dollar (EUR/USD) and US Dollar/Japanese Yen (USD/JPY).

Change and fluctuation, in any trading market is frequent and rapid, especially in the forex market. These changes are influenced by various other world events and factors like oil prices, interest rates and economic conditions.

With all these rapid fluctuations going on, the main aim of any forex investor remains on making profit. Every trader is predicting and waiting for the value of the currencies to change in his favour.

Forex Basics:

  • Forex Psychology
  • Money Management
  • Liquidity
  • Market Movements
  • Fundamental Analysis

For more information, please go to these resources:

FX Currency Trading
Forex Basic Strategies
 Currency Charting