Forex is the financial field where currencies from different nations are exchanged for that of another (with the equivalent of over 4 trillion dollars changing hands daily, according to fxstreet). The forex is not a physical market like the amex (american stock exchange) or the nymex (new york mercantile exchange), but more of a global network of interconnected banks, investments firms, hedge funds, currency traders, and other financial and banking entities. Due to the nonexistence of a physical exchange it operates on a full 24-hour period, spanning from one time zone to another in all the major financial centers. There are three main economic zones that comprise the forex market: australasia (australia and asia), europe, and north america. This structure enables participants in the forex market to trade at any time of day or night

Forex is an intimidating word for many of us, mostly because we don’t know what it is. Basically, forex – or foreign exchange – is just like any other business, where you seek to make profit by buying low and selling high. The only difference is that in forex, you’re buying not things, but foreign currencies.

Forex is primarily a short term market. Most traders enter and exit deals within a 24 hour period – sometimes within a few minutes. Many forex trades can be made in one day without building up a large brokerage fee because forex trades are commission free. Brokers earn money by setting a spread – the difference between asking and selling prices.