What is FOREX?

"Foreign Exchange" is the simultaneous buying of one currency and selling of another. In other words, FOREX (Foreign Exchange) is the name given to the "direct access" for trading of foreign currencies. Currencies are traded in PAIR, for

example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). With an average daily volume of $1.5 to $1.8 trillion, FOREX is the largest, most liquid and exciting market in the world. Until recently, FOREX trading was only opened to big players such as banks and other financial institutions. Thanks to the development of online trading platforms, the door to this lucrative market is now opened to retail traders like you & me too.

There are two primary reasons to buy and sell currencies. Only 5% of the daily FOREX transactions happened when companies and governments buy or sell products and services in a foreign country. The other 95% of the transactions is contributed by institutional and retail traders who trade FOREX for profits or speculation.