Thread: Forex

Hi just to check have anyone went into this, care to give any advise.

http://www.rapidforex.com/home.cgi?e...fd=index.shtml

Foreign exchange market (also called Forex of FX to shorten the name) is the oldest market in the world. It is also seen to be the largest one. Since currencies' primary market work 24-hours a day, Forex is also the largest market with highest liquidity. This is an interbank market carrying out spot (or cash) transactions. The currency futures market, to be compared with Forex is traded only 1% as much.

The Forex market, like other securities markets, negotiates prices using a bid/ask system. A seller states an asking price and a buyer makes a bid. For wholesalers (banks, governments, and large hedge funds) the "spread" between bid and ask is usually only 1 or 2 pips. Retail brokers mark the spread up 3 to 20 pips and keep the spread as their fee instead of charging a commission like stockbrokers. The Forex trader tries to anticipate which way the currency exchange rate will move and "goes long" if she thinks a currency's value will rise against another currency. He "goes short" if he thinks it will fall. When Forex traders guess right and the change exceeds the spread, they make money.