WHAT IS FOREX ?
Forex (FX) is the marketplace where various national currencies are traded. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.
Many entities, from financial institutions to individual investors, have currency needs, and may also speculate on the direction of a particular pair of currencies movement.
Currency prices are constantly moving offering numerous trading opportunities on a daily basis.
In forex, currencies are listed in pairs, e.g. EUR/USD, GBP/USD, USD/JPY. Unlike the price of commodities and shares, the forex market neither goes up nor down. What really happens is that the price of one currency moves up or down in relation to another.
The most common terms in forex trading are buy and sell, or going long and short. However, when you trade forex online, you are neither buying nor selling real currency. All you do is placing a bet on the direction in which a currency pair will move.