Forex Walkthrough

AAA

Introduction - Foreign Exchange

First Time Here? This is a step by step guide to currency trading, but you can jump around using the left navigation bar. If you already have a general understanding, you might want to skip to Level 1. If you already trade, you could jump to Advanced, or Trading Strategies.

What Is Forex?
Although it doesn't get as much media attention as the stocks or bonds markets, the foreign exchange market (or "forex" for short) is the biggest financial market in the world, with over $4 trillion worth of transactions occurring every day. Simply, forex is the market in which currencies, or money, are traded. The forex market allows you to buy and sell money.

There is no one-stop shop for buying and selling currencies; trade is conducted through a lot of individual dealers or financial centers. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. This means, at any time during the day you can find a financial center that is buying and selling currencies.

With the constantly improving technology for trading, dealing in currencies is now more accessible than ever. In the past, the foreign exchange market was the domain of government, or companies with a lot of money. However, with the wide spread access to the internet, firms now offer any average Joe the ability to open accounts to trade currencies. All you really need, in terms of hardware to get started, is a computer and access to the internet.

How Forex Is Unique


Related Articles
  1. Personal Finance

    The Complete Guide To Job Searching

    Here's everything you need to know about looking for a job.
  2. Personal Finance

    The Complete Guide To Calculating Your Net Worth

    Here's everything you need to know about calculating your net worth.
  3. Entrepreneurship

    8 Steps To Becoming Your Own Boss

    If you’re serious about being your own boss and setting up shop in your living room, you can do it. These steps can help get you there.
  4. Professionals

    Cost Benefit Analysis

    Cost Benefit Analysis
  5. Forex Education

    Break Into Forex In 12 Steps

    Learn how to get started in forex trading.
  6. Economics

    Macroeconomics

    Find out everything you need to know about macroeconomics.
  7. Savings

    8 Steps To An Organized Financial Life

    Check out these eight easy steps that can help you take the confusion out of your personal finances
  8. Forex

    Foreign Exchange

    What is the foreign exchange market and what is it used for?
  9. Professionals

    The Risk Management Process

    The Risk Management Process
  10. Forex Education

    Forex Broker Guide: Conclusion

    If a trader has confidence in a forex broker, he or she will be able to devote more time and attention to analysis and developing forex strategies. A bit of research before committing to a broker ...
RELATED TERMS
  1. International Currency Exchange ...

    The rate at which two currencies in the market can be exchanged. ...
  2. Online Currency Exchange

    An online system for exchanging one country's currency for another. ...
  3. Currency Exchange

    A business that allows customers to exchange one currency for ...
  4. Foreign Exchange

    The exchange of one currency for another, or the conversion of ...
  5. Cross Currency

    A pair of currencies traded in forex that does not include the ...
  6. Currency Pairs

    Two currencies with exchange rates that are traded in the retail ...
RELATED FAQS
  1. What are the most important steps in the accounting cycle?

    Understand the steps in the accounting cycle. Learn about each of the eight steps in the accounting cycle and why each one ... Read Answer >>
  2. What would happen if you tried to skip steps in the accounting cycle?

    Understand what would happen if a company or accounting department tried to skip steps in the accounting cycle. Learn why ... Read Answer >>
  3. How do you make money trading money?

    Investors can trade almost any currency in the world. Investors, as individuals, countries, and corporations, may trade in ... Read Answer >>
  4. Where is the central location of the forex market?

    There is no central location of the foreign exchange market, often referred to as the forex (FX) market. Transactions in ... Read Answer >>
  5. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Answer >>
  6. How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency ... Read Answer >>

You May Also Like

Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center