INTRODUCTION TO THE WORLD OF FOREX

Forex, or as it is referred to many times: “Fx”, “currency trading”, or “foreign exchange”, is simply a term used to describe the trading of worlds currencies. A currency trade is the simultaneous buying of one currency and selling the other one, e.g. buying US dollars (USD) and selling Euro dollars, buying British pounds and selling US dollars etc. The combination is called a currency pair. We’ll touch more on that later on in this write-up.
Some years back, foreign exchange trading was mostly limited to large banks and institutional traders however; recently, internet has made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade. Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Only they were able to take advantage of the currency market's fantastic liquidity and strong trending nature of many of the world's primary currency exchange rates.
The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, and so on, as the case may be. About 85 percent of all daily transactions involve trading of the major currencies.
Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currencies.
Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. You know what? This market is open 24 hours. I'm sure you can tap into this stream of opportunity by scheduling a time that suites you best. You can stay in day time and trade or stay at night if you think you're a vampire. But it doesn't matter what you think, you too can do it if given the opportunity to learn. I also want to say that FOREX on it's own controls daily capitalization of about 3.5 trillion US dollars. Imagine this...................... There's certainly money in the biz.