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The word “Forex” is derived from the words “Foreign Exchange”.
The foreign Exchange market is the biggest market in the world with daily turnover (buying and selling) of up to 5 trillion dollars!
A lot of different organisations including banks, large companies, trading companies, investors and speculators all take part in the Forex market for many different reasons.
Whilst a speculator may buy and sell positions looking to by fast moves in the market, large companies could be exchanging large quantities of currency for clients that need their money converted into another currency.
The Forex market is the biggest in the world and turns over up to $5 trillion per day.
There is no other market in the world that even comes close to having this sort of trading volume during a 24 hour period.
The Forex market for traders is a market where they can make profit by either buying low and selling high or by selling high and buying low.
Trading Forex for retail speculative traders has not always been available, It was not until around 1996 that retail traders have been able to trade. Before this, Forex was only the domain of either large companies, or the super rich.