What is Forex

FOREX or Foreign Exchange is the trading by investors and speculators in the Foreign Exchange market.

The Foreign Exchange market is a global decentralised market that determines the value of currencies.

In the FOREX market the exchange rate between two currencies constantly changes. Currencies trade  on an open market , just like stocks , cars , food and other goods and services.

A currencies value fluctuates as its supply and demand fluctuate. For example when coal is in high demand  from China and the coal price is high– the Australian Dollar will also be in high demand resulting in its value to rise against other countries.

Benefits of Trading FOREX

You can buy and sell a currency pair at any time as it is a highly liquid market .

The FOREX market is the largest trading market in the world – estimated at over US  $3 Trillion Dollars a day with a growth of over 20% since 2007.

This market through technological development can now be traded by the small investor. Previously it was only available to banks , governments and large financial institutions .

It trades 24 hours a day- five days a week and offers the opportunity of highly frequent micro trading by computerised systems using government approved and authorised FOREX brokers.