What is „Forex”?

Forex is a shortened version of the „FOReign EXchange” phrase which means the sales market of the foreign currencies. The sales between investors and plungers happen hier. You might have alreadyheard the phrase „buying cheap and selling expensive”, which is always true in currency trading. A forex trader buys undervalued currencies and sales overvalued currencies. Just like the traders of the stock market buy overvalued stocks and sells the ones that are overvalued.

What is traded on the foreign currency market?

On this market, not surprisingly, we can trade money (foreign currencies). We can buy money for money and sell money for money. What is the point then? The money of differen countries or areas have different values to one another, changing every second of the day. Obviously these changes are very small, but they sum up with time and they could mean big changes in a casual way. If one learns the method of how to understand the changes depending on which informations, then on will be able to trade making a profit (buys cheap, sells expensive). A good, profiting trader usually educates oneself for years to get to the level where he can make a living out of tradings. If you can be setisfied with smaller profit but would like to have a winning strategy with just a few weeks of education and a few months of practising than you’re at the right site.

The trader must understand the basics of the different foreign currency movements in order to acquisite the different methods. To know in which periods can you get the most profit and which periods are not for trading you have to learn how to recognise them.

The need of sales of the foreign currencies are the number one reason that forex it the most liquid financial market in the world. Other markets are dwarfed by this, including the stock markets, that has 2000 billion USD daily on an average. (The total amount changes constantly but the report of Bank of International Settlements (BIS) of august 2012 that the trading value of forex market is over 4900 billion USD daily)