Forex Definition
The Forex, and also known as "The Foreign Exchange" market exists wherever
one currency is traded for another. It's the largest financial market in the
world. Simply if we compare the New York Stock Exchange trades vs changing hands
in forex, we will discover Forex market is a lot of times larger than both
Equity and Treasury markets combined.
Forex or "Foreign Exchange" is where the money of one nation is traded with
another. The most important and popular pairs of exchange in the forex market
are "Euro Dollar", and you will see this pairs in all forex display screens as
"EUR/USD". There are also a lot of others pairs but sure not important and not
famous as "EUR/USD" pairs, like:-
1-The British Pound, and you will see this pairs in all forex display screens as
"GBP/USD".
2- The Japanese Yen, and you will see this pairs in all forex display screens as
"USD/JPY".
3- The Swiss Franc, and you will see this pairs in all forex display screens as
"USD/CHF".
However there is a problem in the forex market until this day, there is no one
central exchange where everyone can exchange the currency. All the currency
traded are done over the telephone and online through a very big networks that
connects all the banks, brokers and currency traders with each others.
Currency trading in the past was just for the banks, but today and after the new
revolution electronic economy, online forex trading companies start to offer a
lot of services to all traders around the world. Today if anyone have a computer
and internet connection can easily start to trade currencies, but sure the
experience and analysis is very important to success in forex game.
|