What is Forex ?
Forex is simply a change in currency. When will you need to do this? When you go overseas for a holiday, or a business trip. You need to change your money from your countries currency to the currency of the country that you are visiting. This exchange can be use to explain what Forex is about. Many people think the forex market is merely for profiting from foreign currency trading but its main purpose is actually to make it easy for businesses from anywhere in the world to invest and trade internationally. A business entity in China, for example, can import American products and pay using American dollars, although the business earns in yuan. This allows them enough flexibility to purchase necessary goods and services without a lot of time, effort and resources. Now, we say it is very much different from the stock or future exchange market because Forex is an interbank. This means that it is an over-the-counter market where there is no single universal exchange for a certain pair of currency. It is a 24 hour market operating daily 5 days a week. The exact time will differ depending on the Forex Broker that you use. Foreign exchange trading in its simplest form involves the buying and selling of currency pairs. When a person buys, he or she purchases a specified amount of a currency and pays for it using an amount of another currency. The forex trader chooses a currency pair - two currencies from different countries that he or she thinks will change in value. Just take your time to learn about it, use a demo account for a while then you can start trading. Also you can easily find and follow other professionals without having to pay anything or spending months learning about it.