Forex stands for the Foreign Exchange Market also called The Currency Market. In this market the only thing that is traded is money.
Different countries money is worth different amounts and is always changing value that is why you trade in the Forex to gain profit from the change of value in different currencies.
There are seven major currencies that the world trades these are the economic powers on the globe. All of these currenceis account for 80% of all trading in the Forex Market.
The Majors Are:
- The US dollar (USD)
- The Euro (EUR)
- The British Pound (GBP)
- The Swiss Franc (CHF)
- The Canadian dollar (CAD)
- The Australian dollar (AUD)
- The Japanese Yen (JPY)
No Central Trading Location
The Forex Maket has no central location because it is made up of many markets all over the world all run on computers. This makes it the largest market on earth that does over 3 trillion dollars a day.
That is what makes this such a great market for traders. The volume and price movement is large and it is easy to make money quickly. The wide price movement also makes it very easy to lose money quickly.
