The currency (foreign exchange) market is the largest and oldest financial market in the world

The currency (foreign exchange) market
is the largest and oldest financial market
in the world. It is also called the foreign
exchange market, or "FOREX" or "FX" market
for short.

It is the biggest and most liquid market
in the world, and it is traded 24 hours-a-day .

The forex market is a cash (or "spot")
inter-bank market. By comparison, the
currency futures market is only one per
cent as big.

Foreign Exchange simply means the buying
of one currency and selling another at the
same time. That's it!

In other words, the currency of one country
is exchanged for those of another. The
currencies of the world are on a floating
exchange rate, and are always traded in
pairs - Euro/US Dollar, US Dollar/Yen, etc.

In excess of 85 percent of all daily
transactions involve trading of the major
currencies:

- US Dollar,
- Euro
- Australian Dollar,
- British Pound,
- Canadian Dollar
- Japanese Yen,
- Swiss Franc

Unlike the futures and stock markets,
trading of currencies is not centralized
on an exchange.

Forex literally follows the sun around
the world. Trading moves from major banking
centres of the U.S. to Australia and
New Zealand, to the Far East, to Europe
and finally back to the U.S.

In the past, the forex inter-bank market
was not available to small speculators
due to the large minimum transaction
sizes and often-stringent financial
requirements. Banks, major currency
dealers and the occasional huge
speculator used to be the principal
dealers. Only they were able to take
advantage of the currency market's
fantastic liquidity and strong trending
nature of many of the world's primary
currency exchange rates.

Today, foreign exchange market maker
brokers are able to break down the larger
sized inter-bank units, and offer small
traders the opportunity to buy or sell
any number of these smaller units (lots)
form their PC's

These brokers give virtually any size
trader, including individual speculators
or smaller companies, the option to trade
the same rates and price movements as the
large players who once dominated the market.

Market makers quote buying and selling rates
for currencies, and they profit on the
difference between their buying and
selling rates.

===How the Retail Spot Forex Works===

When you use retail spot Forex software,
it only requires an internet connection to
trade real-time. No extra data-feed is required.

All online Forex brokers' software is real-time,
rather than delayed. If you download a free
30-day demo of the software, you can "practice
trade" in real-time with the exact same quotes
as a live account. The software is exactly the
same, and you receive virtual money for the
account.

You are then able to enter trades in real time,
and monitor them just as though it were a
real account.

You will experience no difference between the demo
account and a live account. When you log onto your
trading platform, you see your price quotes, and you
simply click on the price to sell or buy. It will ask you
how many lots or contracts you want, and then you
click ok, and you are in.

You can also use the charts they provide with the
trading platform; they will reflect the movement of
the real-time price of their trading platform.
With those charts, you usually have the ability to
place horizontal lines where you choose (pivot numbers).

Each currency is quoted with a "pip spread". This is
how the dealer makes his money. With most online
retail brokers, there are no commissions. For example,
I want to buy the Swiss Franc, and the current quote is
1.7205/1.7210. The dealer will give me the 1.7210 price,
and I would start the trade -5 points which equals $30.00
(for a stand lot).

In my trade window, I would see my money change as the
market price moves back and forth. As it moves in my
favor, my negative position is removed as soon as the
market is trading 1.7210/1.7215, or higher.

In the spot forex market, it is common for currencies
to move 100 to 300 pips/points in a 24-hour session.

If you like volatility, there is no currency more volatile
than the Franc.

If it's action you're looking for, like Mr. Magoo driving
a sports car, then the forex is the place to be.

Forex Trading Mentorship To Success