So you ask, what exactly is forex?
Forex stands for the "foreign exchange market" which is also known as the "currency market" or "FX". It is a worldwide market and involves trading of various currencies. These financial centers allow people throughout the world trade between currencies, around the clock excluding only weekends.
This market is was created with the purpose of letting foreign exchange aid international trading and investment. It also gives businesses the opportunity to import goods from say Europe and make payment using Euros, when they in fact earn in U.S. dollars.
Some experts in this market believe that using this institution allows large companies, or owners of things such as hedge funds run away with money, leaving a massive monetary imbalance. Competition in countries may also be hindered by the introduction of this market.
During the 1970s, the market switched from the exchange rate regime (which was fixed using the Bretton Woods system) to the improved floating exchange rates.
The forex market is elite due to various reasons. Volume trading helps in market liquidity, there is constant operation (24/5 since it is closed on weekends), and involves lower margins for loss. There is also geographical spacing, and many of these fore mentioned factors affect the actual exchange rates.
... and this is just the start, continue to browse the site to learn the tricks of making big bucks using forex!
