Forex is: “foreign exchange market” it refers to the foreign currency exchange. Foreign currencies are exchanged every day, from business man or tourists all over the world.
The aim of forex traders is selling and buying currencies to make profit. When a trader sells or buys currencies at the right moment he can make a big profit, but if he chooses the wrong moment to deal with currencies the result is unfortunately a loss.
For this reason, before you start trading and become a forex trader, you have to be nearly an expert of this market and how it works. A forex trader must take always in consideration the following factors:
1. macroeconomic and monetary situation of both currency’s nations
2. stock prices and exchange rates movements and fluctuations
Why are these factors so important? Because stock prices and exchange rates change are dependent on the monetary as well the macroeconomic situation.
The foreign currency exchange in forex can carried out without days off and without lunch break, 365 days a year, 7 days a week, 24 hours a day. Why? Because the financial centers are located in various nations in different time areas: London, New York, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. Pointedly you haven’t to fly to these financial centers, you trade simply at home, or where you have the possibility to use a computer.