Forex Basics

FOREX - the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.

The Forex market and its activities have evolved tremendously during past few decades. Gone are the days when foreign exchange transactions were used as part of commercial, investment and central banks. Globalization and economic integration have impacted the involvement of foreign exchange transactions by multinational corporations, hedge funds, private investors, individual investors, speculators and arbitrageurs. This has changed the shape of foreign exchange market from a traditional limited-hour operational system to 24-hour electronic-based and market-oriented mechanism. Today, this market is believed to be the largest financial market in the world with an estimated daily turnover of trillion of dollars.