The FOREX market

The term FOREX is the international currency market worldwide. Each time you make a purchase or sale of the currency of any country, it makes a formal or informal transaction in this market. Its name comes from the terms in English or Foreign Exchange Foreign Exchange.

Is by far the largest financial market in the world, compared with equity markets as NYSE or Nasdaq and is approximately 20 times larger. In the FOREX currency transactions are made between central banks, governments, currency speculators, multinational corporations, large private banks, specialized brokers and some other organizations. This gives a highly liquid market, which allows participants to quickly implement high-volume transactions, without significantly affecting the price.


Previously, in order to make transactions on the FOREX, it was necessary to have large amounts of money, and only multinational organizations, governments and central banks could make transactions directly into. Today there are several specialized brokers that allow anyone to open an account and start making transactions almost immediately, buying or selling foreign currencies. The most common currencies in the FOREX are:


Dollar USD


EUR Euro


Japanese Yen JPY


British Pound GBP


CHF Swiss Franc


Australian Dollar AUD


While in theory you can trade with major world currencies, 60% of transactions involving the Euro or U.S. Dollar, making them by far the most used currencies. The main centers of FOREX transactions are in London, New York, Tokyo and Singapore. However, the participating banks around the world, trading continuously 24 hours a day, and that while Asia ends session, the session begins in Europe, followed by the U.S. session, returning again to the session in Asia back to the beginning of another day. This market is fluid and never stops, but the largest movements are performed on weekdays because weekends usually the movement in the Forex market is almost nil.


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