Forex is short for Foreign Exchange, where money from one country is exchanged for that of another or the simultaneous buying of one currency and selling of another.
When one deals in forex trading the profit or loss, he incurs is the increased or decreased value of an investment caused solely by currency movements. For example, if an investor thought that the US dollar was weak, he might purchase German Mark. The investor’s, the real profit or loss could then be in how the Mark moves against the US$.
Being the largest financial market in the world, the Forex market has a volume of more than $1.5 trillion daily. Also the Forex market, unlike other financial markets, has no permanent location, no central exchange and just happens Over the Counter. It operates through an electronic network of large banks, central banks, currency speculators, multinational corporations, governments and other financial markets and institutions. Retail traders are individuals who are a small part of this market. They participate indirectly through brokers or banks.
The foreign exchange market is unique because of its trading volume, the extreme liquidity, the large number...