What is FOREX?

If all countries in the world use a common currency, they will be no need to understand foreign exchange! In reality, however, every country has its own currency. The foreign exchange market has emerged because of existence of different national currencies national currencies and of the need for the international transaction such as trade, investment etc. Given the large volume of international transaction, banks and trading companies need mechanism to facilitate the exchange of currencies.

There are 2 type of Forex Market

* SPOT FOREX
* FUTURE FOREX

Traders in FOREX are described collectively as the FOREX. There is however, no corresponding market place. The FOREX market is not located in a single place like stock exchanges (e.g. NYSE) or the futures market (e.g. NYOBT); THAT IS, TRADING DOES NOT OCCUR ON A "FLOOR". Instead transactions are carried out by telephone, internet or telex from many separate locations, often in different cities and countries.

Many outsider think of FOREX trading as requiring arcane skills and great sophistication and this view is reinforced by the jargon used by FOREX dealer. In fact, these technical terms actually cloak some rather straight forward meanings.

Here,we strive to overcome the most seemingly tedious issue by highlighting the relevant elements needed in a successful FOREX transaction. Essentially, our concentration lies on 4 major currencies which are all traded against or with the U.S dollar. They are :

* British Pound Sterling
* Japanese Yen
* Swiss Franc
* Euro currencies