Let’s discuss Forex trading. What does it mean? Forex is the foreign exchange market, or currency market, and is the market in which currencies are traded. It’s the largest, and the most liquid, in the entire world. The average traded value in this market exceeds 1 trillion pounds per day, and includes every currency in the world.

Trade is conducted over the counter, as there is no central marketplace for currency exchange. The market is open 24 hours a day, five days a week, and in all of the major financial centers, including: London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.

It is the largest market in the world as far as the total cash value traded and any person, firm or country is free to participate.

Some of those who participate in this market are only seeking to exchange their own foreign currency. For example, multinational corporations which pay wages and other expenses in nations other than that which they sell products in. But, a very large portion of the market is made up of currency traders, speculators who operate on movements in rates, much in the same way others would speculate on stock prices. The individuals attempt to take advantage of even the smallest fluctuations in exchange rates.

In Forex, there is little to no “insider information”. Fluctuations in exchange rates are most often caused by actual monetary flows as well as anticipation on global economic and macroeconomic conditions. Important news is released to the public, so, worldwide, the news is received at the same time. At least in theory!