What is Forex

The foreign exchange market (also known as Forex or FX) is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.

Forex is one of the most exciting, fast-paced markets in the financial world. Though historically, Forex has been the domain of large institutions, central banks, and high wealth individuals, the growth of the Internet has allowed the average individual to become involved with and profit from online currency trading.

Trading Forex is the act of making predictions based on minuscule variations in the global economy and buying and selling accordingly. The exchange rate between two currencies is the rate at which one currency will be exchanged for another. Forex traders use available data to analyze currencies and countries like you would companies, thereby using economic forecasts to gain an idea of the currency’s true value.