Foreign currency exchange market (or) Forex Market is the the largest trading market in the world with trades amounting more than Three (3) Trillion US Dollars every day. It is a process of buying and selling currencies at the same time simultaneously. Millions and millions of people making huge money every day using this currency trading market.
Forex trading shortly and popularly referred as FX. It is process of buying and selling currencies of two countries in pair. To be explained in simple words, it is a process of investing money on economically fluctual value of currency of one nation against another. Normally firms or websites being the medium for forex trading presents you with a software by which your trading process being carried out and recorded. At some places it is carried out by phone.
E.g.:US Dollar / Euro. During the time of this page has been created, 1 Euro = 1.31 US Dollars. Here the First currency USD is called the Base Currency and the Second One Euro is the Quote or Counter Currency. When the time one invests on USD against Euro and if there is a slight increase in the value of USD against Euro, say 1 Euro = 1.28 USD, then he gains profit respective of the amount invested.
Advantages of FX:
*One can make huge profits than other investing platforms. *Unlike Stock market, your profits and losses are decided by your own mind here. *The market is highly liquid, as said earlier, more than 3 trillion USD has been the turn over.
24 hours of trading possibilities. *Equal prospective rising and falling in currency values. *Virtually possible to trade from anywhere in the world and any currency. *High margin of profit and ability of trading available even for small investments and for small currency fluxes. *To succeed with forex trading one needs a lot evaluation and analysis over the current market fluctuations in currencies of various nations. Fluctuations are depending upon manu social political and regional factors. Also one should wisely invest on the currencies by having choice of better possible profits.
Even though it is one of the highly risky investments, one can master and make more and more using Forex Trading(FX). Good luck.