Currency Forex (Foreign Exchange FX) market is the largest financial market and liquid in the world, with a daily trading that exceeds the daily joint negotiation of all world stock and bond markets. It allows investors from around the world buy and sell foreign exchange through the exchange between bidders and applicants of the same.
When it comes to investing in currencies should bear in mind that currency trading pairs, so that the first currency indicates the number of units of the second currency according to the exchange rate. In this way, a quote euro 1.40 dollar (EUR USD) indicates that a euro is equivalent to 1.40 dollars.
It offers an operating with leverage, since when it comes to trading Forex'll just put a percentage of the total amount of the transaction - from 2.5% - in concept of guarantees.
They allow to invest upward (buy currency pair) and reverse down (sell currency pair) on any currency pair, given that there are no restrictions on short-selling in.
The FX market belongs to the category of non-organized market or OTC (over the counter). It's a decentralized market, whose operations are performed via the Internet or by telephone.
