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The currency (foreign exchange) market is the largest and oldest financial market in the

world. It is also called the foreign exchange market, or "FOREX" or "FX" market for

short. It is the biggest and most liquid market in the world, and it is traded mainly

through the 24 hour-a-day inter-bank currency market - the primary market for

currencies. The forex market is a cash (or "spot") inter-bank market. By comparison, the

currency futures market is only one per cent as big.

Foreign Exchange simply means the buying of one currency and selling another at the

same time. In other words, the currency of one country is exchanged for those of

another. The currencies of the world are on a floating exchange rate, and are always

traded in pairs - Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily

transactions involve trading of the major currencies - Australian Dollar, British Pound,

Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar.

Unlike the futures and stock markets, trading of currencies is not centralized on an

exchange. Forex literally follows the sun around the world. Trading moves from major

banking centres of the U.S. to Australia and New Zealand, to the Far East, to Europe and

finally back to the U.S.

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In the past, the forex inter-bank market was not available to small speculators due to the

large minimum transaction sizes and often-stringent financial requirements. Banks,

major currency dealers and the occasional huge speculator used to be the principal

dealers. Only they were able to take advantage of the currency market's fantastic

liquidity and strong trending nature of many of the world's primary currency exchange

rates.

Today, foreign exchange market maker brokers such as FX Solutions are able to break

down the larger sized inter-bank units, and offer small traders the opportunity to buy or

sell any number of these smaller units (lots). These brokers give virtually any size trader,

including individual speculators or smaller companies, the option to trade the same rates

and price movements as the large players who once dominated the market. Market

makers quote buying and selling rates for currencies, and they profit on the difference

between their buying and selling rates.

If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, Forexgen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills.
No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.