Forex trading is a market that exchanges foreign currencies. Until the rise of the electronic age, only banks and large investment firms had access to this market. Now even the smallest trader can tap into the phenomenal opportunities that forex has to offer.
The major forex currencies are the U.S. dollar (USD), the Japanese Yen(YEN), the Great Britain Pound (GBP), the European Union's Euro (EUR), and Switzerland's franc(SWF). These currencies account for 85% of all daily transactions on the forex.
These currencies are usually traded in pairs. For example, the Euro is traded against the dollar, the dollar is traded against the yen, the pound is traded against the dollar, and the dollar is traded against the franc.
The basic concept of the forex market is the same as the stock market. You exchange a currency when it is valuable and purchase one while it is of a lower valuable. If you purchase a currency while its value is low you have the potential to make tons of profits if you wait to sell it when its value has returned.
Because of time zones, the market is active all day. That means while you are sleeping, traders all over the world are exchanging currencies. This means that you will have a lot of flexibility as a trader, because you won't be tied down to a schedule.
Because large, national movements and economies determine the value of a currency, the foreign currency market is more stable than the stock market. This makes trading more reliable and profiting easier. The forex market is so large that almost 2 trillion dollars are traded daily. That's more than all other money markets combined.
Now that the market has opened up to small traders, you too can earn your fortune by exchanging foreign currencies.
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