What is forex? How does it work? 

The simplest definition of foreign exchange is the exchange of one currency for another. 

The foreign exchange market allows companies, banks and individuals to buy and sell foreign currencies. Unlike other financial markets, the foreign exchange market has no single location – trading is done globally via telephone and computer links. The Forex market is huge: the trading volume is in excess of 2 trillion USD per day, providing the greatest liquidity to investors.

In the past small investors have had limited access to the lucrative forex market. The Interbank market is no longer the exclusive domain of large players. Technological leaps (such as the state of the art Dealbook360 trading software) have opened up this exciting market to small speculators. Real-time Interbank dealing rates allow the trader to place a buy or sell order and see it executed within a fraction of a second. 

There are always buyers and sellers in the forex market. The market absorbs trading volumes. A trader is never stuck in a position due to lack of market interest, volume and/or liquidity.

By 2010 in excess of 20 million individuals like you will be trading currencies as a career. 

Interested? There’s more…

The Industry

The Inter Bank Foreign Exchange Market (IBFXM or FOREX market) is an international market place where trading takes place on the world’s major currencies such as the United States Dollar, the Swiss Franc, the Euro, the Japanese Yen, and British Pound. The Currency Market is made up of approximately 5000 Trading Institutions. International Banks, Government Central Banks, Commercial Companies, Brokerage firms and Individual Speculators.

Forex trading is not bound to any one floor or specific market and is done electronically between networks of banks continuously over a 24-hour period. There is no centralized location for trading activity and trading occurs over the Internet at locations worldwide.

The advent of the Internet has opened a whole new world for the small investor allowing him to trade this profitable market place from the comfort of his dwelling or office. All trades are calculated on very sophisticated trading software systems and finally executed via a designated dealing desk.

Why trade forex?

24-hour market

Foreign exchange market trading occurs over a 24 hour period picking up in Asia around 24:00 CET Sunday evening and coming to an end in the United States on Friday around 23:00 CET. Although ECNs (electronic communications networks) exist for stock markets and futures markets that supply after hours trading, liquidity is often low and prices offered can often be uncompetitive.

Forex is the most liquid market in the world

Most forex transactions must continue, since currency exchange is a required mechanism needed to facilitate world commerce.

The Forex market is Commission-Free

One consistent margin rate 24 hours a day allows Forex traders to leverage their capital more efficiently with as high as 100-to-1 leverage.

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