What is Forex

  • What is the Forex Market?

First, let us define the Forex market: its financial shorthand for the foreign exchange market. The forex market is booming these days. And understanding what it is and how it works is imperative to your success within the market. We will help you understand the reasons the forex market is vital to any successful investor, and this guide is here to get you started. Below you will find several reasons why you must consider the Forex market in your future commercial endeavors

 The Forex market changes currency from one country’s currency to other countries for the purposes of commerce, eCommerce, and tourism. The forex market – also known as FX, foreign exchange market, and the currency market – deals in several different currencies. The US Dollar, being the most valued currency and thus the most traded in the Forex market, is also known as the “Interbank Market”. The Euro is the second most traded currency in the forex market.

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  • Why Trade Currencies?

In the past, currency was only traded from bank to bank or from bank to other financial institutions – hedge funds, stock markets, etc. – on behalf of their clients. There was a need to exchange currency in order to facilitate large purchases for trades, imports, and exports of goods and services necessary for the success of companies in a variety of countries.

The trade business has been around for centuries and to trade from one country to another requires trading of currencies to make final sales. In recent years, due to the invention of the internet, it has been easier to trade currencies not just among financial institution but among individuals as well. And thus, the Forex market was created.

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