Introduction - Foreign Exchange
First Time Here? This is a step by step guide to currency trading, but you can jump around using the left navigation bar. If you already have a general understanding, you might want to skip to Level 1. If you already trade, you could jump to Advanced, or Trading Strategies.
What Is Forex?
Although it doesn't get as much media attention as the stocks or bonds markets, the foreign exchange market (or "forex" for short) is the biggest financial market in the world, with over $4 trillion worth of transactions occurring every day. Simply, forex is the market in which currencies, or money, are traded. The forex market allows you to buy and sell money.
There is no one-stop shop for buying and selling currencies; trade is conducted through a lot of individual dealers or financial centers. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. This means, at any time during the day you can find a financial center that is buying and selling currencies.
With the constantly improving technology for trading, dealing in currencies is now more accessible than ever. In the past, the foreign exchange market was the domain of government, or companies with a lot of money. However, with the wide spread access to the internet, firms now offer any average Joe the ability to open accounts to trade currencies. All you really need, in terms of hardware to get started, is a computer and access to the internet.
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