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Forex is a market where a currency is traded for another currency. This market happens to be the most liquid financial market in the world. Forex trade is carried out between multinational corporations, big banks, governments, financial institutions, and currency speculators.

The forex market is open for traders day and night, and operates for five days in a week. It is a market with high potential, and one can make an enormous profit out of it. The two major forces in the forex market are demand and supply which are responsible for the constant fluctuations in the exchange rates being traded.

You will come across four commonly traded "currency pairs" in the forex market. These are the US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, US Dollar vs British Pound, and Euro vs US Dollar.

Forex trading started in 1973, and since then, has become the most fertile financial exchange platfrom in the world. Forex trade is not carried out on fixed exchange rates. There was a time when only big investors like multinational corporations and banks could access this market. However, with the emergence of newer technologies, even retail investors can try their hand at this market.

Things have become very easy with the introduction of the internet in people’s daily lives. People can participate in the forex market by sitting right at home. A trader interested in doing forex futures trading must first gain ample knowledge on the subject before moving forward.

The investment valuations of forex traders go up and down depending on the currency movements. These foreign currencies are continuously purchased and sold across global markets. The market conditions of foreign exchange movements may change at any point of time with relation to real-time events.

There are a number of factors that affect exchange rates. These include both economic and political factors. Local and international political scenarios can have a tremendous impact on the exchange rates as well.

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