Introduction to Forex (First Lesson)

What is FOREX?

Forex is actually a short form of saying foreign exchange and so it implies foreign currency exchange. This is very similar to a stock exchange market which functions 5.5 days a week and anybody who owns a computer and an internet connection can start trading.

There are some basic differences between an ordinary stock exchange and Forex market. The main difference lies in the fact that Forex trading is actually purchasing and selling different pairs of currency like the Euro dollar, EUR/USD, British Pound and Japanese Yen instead of buying and selling stocks or bonds. The other main difference is that Forex is open twenty four hours of the day and so you can open and close your dealing according to your convenience. But this is not possible in a stock market.

Forex is now more popular than conventional trading as currency is much more impulsive than the stock market. This explosive nature guarantees massive wind falls if a trader is lucky enough to be on the favorable side of the trade. So Forex is just all about buying and selling foreign currency hoping to make large profits during trading.