What is Forex?

I’ve seen a lot of ads talking about forex trading system, but the other day I realized I had no idea what Forex actually was. So I did some research and here it is in a nutshell:

Forex is a decentralized market for trading world currencies. It is basically what determines the exchange rate when you try to convert money from one currency to another. Unlike most stock exchanges, the Forex market is actually global and runs 24 hours each day. It is closed on the weekends.

As you can imagine the transaction volume on the forex market is absolutely huge. Many people are investing in Forex using computer programs that will automatically place trades. It is estimated that 25% of the volume on the Forex market is being driven by computers executing trades. The market exhibits a number of trends that can be tracked and used to make a profit. Each country has its own business cycles and these show up in the forex market as trends that can be tracked and invested in.

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