An introduction to forex
The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
What is forex?
24 HOURS MARKET
The forex market is open 24 hours a day, so that you can be right there trading whenever you her a final scoop.
NARROW FOCUS
Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no room for confusion, so even though the market is huge, it's quite easy to get a clear picture of what's happening.
LIQUIDITY
The enormous volume of daily trades makes it the most liquid market in the world, which means that under normal market condtions you can buy and sell currency as you please.
THE MARKET CANNOT BE CORNERED
the colossal size of the Forex market also makes sure that no one can corner the market. Even banks do not have enough pull to rally control the market for a long period of time, which makes it a grate please for the little guy to make a move.
SIMPLICITY
Use technical analysis (indicators on charts) methods from other markets like equities..
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