The Foreign Exchange market, also referred to as the "Forex"
is the biggest and largest financial market in the world. It has a daily average
turnover of US$1.9 trillion- just imagine that amount of money! Don't you want
to join this trillion-dollar industry?
Forex is the simultaneous buying
of one currency and selling of another. Currencies are traded in pairs, for
example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So
basically, Forex is trading.
There are two reasons to buy and sell currencies. About 5% of daily turnover
is from companies and governments that buy or sell products and services in a
foreign country or must convert profits made in foreign currencies into their
domestic currency.
The other 95% is trading for profit, or what you call speculation. Investors
frequently trade on information they believe to be superior and relevant, when
in fact it is not and is fully discounted by the market.
