Forex trading education - What is the forex market?

What is the forex market?

The forex market is the trade arena which allows investors to trade foreign currencies throughout the trading day. This market is the largest in the world and has a daily turnover of 3 trillion USD.

The market is active 24 hours a day, 5 days a week. The value of the currencies changes every moment throughout the day according to supply and demand levels.

Just as in a regular market we buy and sell vegetables and in the stock market we but and sell stocks. In the forex market we but and sell currencies, this is our product. There are more than 100 currency pairs in the world which can be traded.

Currency exchange rates are uniform throughout the whole world. If the exchange rate of the Euro in relation to the USD is 1.5520 in London, it will be 1.5520 in Congo, New York, Australia and Hong Kong.

The Forex market is largely composed of speculators. Speculators are people like me or perhaps like you, who buy and sell currencies to profit from the change in the exchange rate of currency. Only five percent of the transactions are for real purposes of commerce such as: industry, tourism and more. The remaining 95 percent are for speculation purposes.

This is the zero-sum game: the total gains are equal to the total losses.

whats next?
* What effects the Forex market?
* Education Index