What’s all the hubbub about Forex?

Forex is the commonly accepted abbreviation for the over-the-counter Foreign Exchange market.

It’s also known simply as the “FX” (and we’re not talking Fox).

The currency volume on Forex is huge — exceeding a trillion dollars each day. Forex exists on a 24-hour-a-day global network that spans corporate, banking, and individual interests. There is no central trading floor. Currency is traded around the world and around the clock, with fluctuations responding to speculation on the latest news as it happens.

The lion’s share of Forex trades involve the Major currencies: the Australian Dollar, British Pound, Canadian Dollar, Euro, Japanese Yen, Swiss Franc, and US Dollar.

Currencies are bought and sold simultaneously on Forex. For instance, a US Dollar/Japanese Yen (USD/JPY) trade would buy US Dollars while selling Yen.

The Forex was traditionally a playground for the monolithic international banks and substantial corporations. Times have changed, however, and it’s now possible for the small investor to enter the speculative waters of currency trading.