Do you know what you are buying and selling in the forex market?

The biggest market in the financial world today is the forex market. Based on a survey did by the Bank for International Settlements, the daily volume for he forex market is $1.9 Trillion in 2004. Its now 2014 and that number is over $4 Trillion now. There is an amazing growth in Forex market due to many factors like globalization.

The forex market focuses on trades of curriencies. They are traded by large investment banks as well as indiciduals all over the world. Trades are being done over the counter and this will add to the liquidity to the market. The market runs 24 hours a day 5 days a week. You can trade all currencies as long as your brokers are providing that option. However, the main currencies are the US Dollar, Euros, British Pounds, Japanese Yen, Canadian Dollars and the Swiss Franc.




In forex, there will always be two sides in a trade. When someone is buying, another person will be selling to the other.  As an individual trader, you will be able to enjoy a certain amount of leverage so that you can trade with excess of 100,000 currency units.


When trading, a currency pair will either rise of fall. When you execute a buy order and the price rises, you will profit. In order to collect your profit, you must close your order. Your profit will be determine by the difference between your entry and the price that you closed the trades.

When a trade rolls over one day, it will be required to incur some charges known as ‘swap’ and this charge will be based on the interest rates between the two currencies.

Yours sincerely,




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