What is Forex?

If you are new to the field of foreign exchange trading, or the Forex market as it is known, you may wonder why it is different from the stock market or other markets, the Forex market is similar and different from the stock markets at the same time, here are some of the main differences: Unlike the stock market, where money is invested in the shares of a company, trading in the Forex market is done by trading one currency against another. In both markets, profits can be made by following the same principle: buying when prices fall, selling when prices rise.

You may have experience with Forex activity without realizing it: anyone who has traveled to another country and exchanged their local currency for the currency of the other country has traded Forex! Naturally, the global Forex market operates on a much larger scale, and includes importers, exporters, multinationals, portfolio managers, hedge funds, and speculators. Some of these players do business in other countries, others hedge one currency against another in order to prevent losses, and some engage in currency speculation – trying to predict currency movements to profit from them. The Forex market is one of the most exciting and fastest growing markets in the world.