Foreign Exchange is an international financial market place where money is sold and bought freely. It is a non-stop cash market where you speculate on changes in exchange rates of foreign currencies. Forex operates through a global network of banks, corporations and individuals trading one currency for another but has no physical location and no central exchange not just like other financial markets.
The Forex market spans from one zone to another in all major financial centers on a 24- hour basis since it has no physical exchange. Since there is no centralized exchange for currencies to be sold or bought, forex is considered to be an over- the counter market or what is called OTC. Banks and forex dealers are connected around the world via internet, fax and telephone to form the Forex market. Read through this article, introduction to forex, in order to know more about forex trading as well as its purpose and many more. Learning forex enables us to know some forex terms, codes, numbers and definitions. Forex trading 101 or the introduction to forex trading will enable us to know how forex works and how to make money with currency trading on forex.
The foreign exchange market began in the 1970's when free exchange rates and floating currencies were introduced. Before retail investors can access the foreign exchange market through banks that transacted large amounts of currencies for commercial and investment purposes. After exchange rates were allowed to float freely in 1971, trading volume has increased rapidly over period of time. Now the Foreign Exchange Market that we see made importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the Forex market in order to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.
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