Understanding and Trading the Forex Marketplace

The foreign exchange market (Forex or FX for short) is the largest single financial market in the world. Generating more than $4 trillion worth of transactions each and every day, much more than stocks or bonds, Forex is the virtual marketplace where currencies are traded. Put very basically, the Forex market is where you go to buy and sell money. However, there is no one central physical location where the buying and selling of currencies takes place. Individual brokers and financial centers around the world conduct trades, and the Forex market is open 24 hours a day and 5 days a week.

Why is the foreign exchange market important to the average individual? Since currencies have to be exchanged any time foreign business or trade takes place, currencies may be more important than you imagine. For instance, if a US citizen buys clothing from a store in London, either that person or the company that sells the clothing has to pay England for the clothing in Great British pounds (GBP). The importer will have to convert U.S. dollars (USD) to pounds, so a conversion rate needs to be known. This need for exchanging currencies exists across all countries and most transactions, and is the number one reason the Forex market is the biggest and also the most liquid financial market in the world

Thanks to the Internet, individuals can now trade currencies through the FX market from their home PC. And because the worlds major financial centers located in Singapore, Paris, Sydney, London, New York, Tokyo, Zürich, Frankfurt and Hong Kong handle Forex trades, there is a market open virtually any time night or day, wherever you are located on the globe. With PC and mobile technology keeping us more connected than ever before, an individual investor armed with a good Forex trading strategy can select a Forex broker and buy and sell major world currencies from the home or office, or even on the go.

And unlike in the past when the only Forex players were governments, companies or individuals with large amounts of money, a single investor can get started with only a computer, Internet access and a small initial investment. Whether you are a veteran Forex trader or new to currency trading, you need to know Forex terminology and have a grasp of exactly how Forex trading works. Then you simply find an online Forex broker, open an account and start trading. To help you, we have compiled a Forex trading resource guide which explains Forex terminology and the basics of currency trading.

Our resource guide also includes financial news and an instructional for learning Forex trading strategy. And since finding a legitimate Forex broker is very important, we have included in-depth reviews on several well-known and reliable Forex brokers. We also teach you the step-by-step process you should undertake to select a Forex broker for your personal account. If you have considered entering the foreign exchange market, or you are a veteran trader already, our Forex trading resource guide answers any questions you may have, and will help you select an online Forex broker that is a good fit for your particular investment strategy.