Information on Forex

What is Forex?

The largest financial market in the world, Foreign Exchange market,
Forex or FX market, all the terms are used to describe the business of
trading of the world's various currencies, with more than $2 trillion
changing hands every day. Being an international foreign exchange
market, Forex is a market where money is sold and bought freely. FOREX
was launched in the 1970s, to become the biggest liquid financial
market today, dealing in more than hundred times the daily trading on
the New York Stock Exchange.

FOREX is a perfect market to invest in, as it is free from any
external control and free competition. Mostly, all Forex trading are
tentative and unlike the stock market trading, the Forex market is not
conducted by a central exchange, but on the “interbank” market, which
is thought of as an OTC (over the counter) market. The trading takes
place between the two dealers, either over the telephone or through
Internet, all over the world. The major trading centers are the ones
at Sydney, London, Frankfurt, Tokyo and New York, making Forex a
24-hour market.

Forex Trading requires the employing fundamental as well as technical
analyses. These analysis help a trader to foresee and determine the
development in the price trends of currencies, based on which, he
attempts to predict market changes and make profits. Fundamental
analysis can be said to use techniques to analyze the value of a
state’s currency with the help of its economic indicators, quality
markets and political events and associations. Political stability
also influences the exchange rate at Forex. Its not just that Forex
Trading is intutive, rather its technical

While Technical analysis engages the study of patterns of price trends
and movements, making it easier for the trader to predict the path of
the future developments in the Forex market. The primary data for a
technical analysis are values, be it the highest or the lowest values,
the price of opening and closing in a definite period of time, and the
amount of transactions taking place. Any factor, be it economic,
political or psychological, having little or some influence on the
value or the price, has already been measured by the market to be
included in the price. We offer some very useful Tips for New Forex
Traders.