What is Forex

FOREX is call foriegn exchange market is nothing but dealing in currencies.Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily.Unlike other financial markets, the Forex market has no physical location, no central exchange. The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions through an electronic network.According to Peter Garnham from the Financial Times website (Published: October 9 2006 20:48) " The foreign exchange market will have doubled in size in just three years next year, thanks to increased participation by fund managers and pension funds.

The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.