What is Forex and How Can You Make Money?

The Foreign Exchange Market or Forex is the largest financial market throughout the World. In the Forex market, the business of exchanging and trading the various currencies of the World takes place. Currencies worth more than 2 trillion U.S. Dollars change hands in this financial market each day. It is the marketplace where money is sold and bought.

The concept of Forex came into being in 1970s and it went on to become the largest and the most liquid financial market in the world. Its dealings are worth hundred times more in comparison to the New York Stock Exchange. Since the Forex market is free from all external control as well as competition, it proves to be the best market for anyone to invest in. Trading on the Forex Market is not carried out over any central exchange but on the interbank market which is considered just like an Over-the-Counter market. The most important trading centers of Forex market include London, Tokyo, Sydney, Frankfurt and New York. Trading is carried out 24 hours a day in the Forex market.

Trading in Foreign Exchange requires both fundamental and technical analysis. Both these analysis are required for the traders to predict and determine the rise or fall in the price trends of different currencies. Based on these interpretations, a trader attempts a trade and makes profit. Thus, Forex trade is not just a trading based on intuition but is a completely technical process.

The Internet has made Forex Trading much more accessible to all. Anyone with a reliable connection can trade from the comfort of their home 24 hours a day.

What has also made it easy for complete newbies is the low cost of entering the market. The MT4 Trading Platforms can be downloaded for free, there is no broker commission, you simply deposit your investment and then begin trading.