| What is Forex trading exactly? Forex trading is | | | | fluctuations are caused by a combination of factors |
| conducted on the Forex market also known as the | | | | including interest rates, inflation, trade deficits and |
| FX, currency and foreign exchange market. It is | | | | surpluses, percentage Gross Domestic Product |
| merely the exchanging of one currency for another | | | | growth and other macroeconomic factors. |
| on the most liquid not to mention lucrative market on | | | | Market players- The primary players on the Forex |
| earth. The main purpose of FX market is to assist | | | | market are Banks including Central Banks, Commercial |
| International trade and investment. | | | | Companies, Investment Management Firms or |
| Features of the Forex Market- Forex trades are | | | | Corporations, Forex brokers, Money Transfer or |
| conducted over-the-counter (OTC), thus there is no | | | | Remittance Companies, Hedge Funds and non-financial |
| central market with tons of red-tape required for | | | | Forex Companies. |
| these currency exchanges. A number of | | | | Pro's and Con's- Forex trading undoubtedly has more |
| marketplaces are interconnected and almost any | | | | pro's than con's. However it imperative to give due |
| currency you can imagine traded against another. | | | | consideration to both aspects of the market. Pro's of |
| Major trading centres include Tokyo, New York and | | | | the market include but are not limited to 24/7 trading |
| London with the most traded currencies being United | | | | throughout the year, unlimited lot sizing, immense |
| States Dollar, Euro, Japanese Yen, British Pound Swiss | | | | market liquidity and last but not least limited market |
| Franc, Australian Dollar and Canadian Dollar. Trading | | | | trend impact on Forex investments. While on the |
| occurs on a non-stop basis with one trading session | | | | other hand market con's include extremely volatility |
| starting in one part of the world and another ending | | | | and unpredictability and the possibility of high loses. |
| in another part of the world. Exchange rate | | | | |