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foreign exchange market
man purse
swiss franc
currency exchange
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forex market
So What Is Forex?
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If you have ever traveled to a foreign country, then you must have found it rather necessary to find a currency exchange booth right at the airport, and exchange the money present in your wallet that is if you are a man or a purse if you are a women, or rather a man-purse if you are a metro-sexual, into the currency of the foreign country you have just visited.

You then go to the exchange counter and find a screen displaying different exchange rates, you find the "Swiss Franc" and then touch your beard if you are a man and say to yourself, "Wow! so just one Dollar is worth 100 Franc? and I have 200 dollar! I am stinking rich!!!". Unfortunately your joy or excitement for that matter, quickly dwindles off when you, probably stop at a nearby restaurant just in the airport to have some hot coffee, all over sudden almost 3/4 of your money gone!

As you do the above acts, it is true that you have taken part in the largest market, famous to some, the Forex market! you have just exchanged one currency for another currency, that is in the layman's language, in the trading terms, taking an assumption that you are a North American, you have just sold your 200 dollars and bought the Swiss Franc.

And then after your visit in the foreign country, you again stop at the currency exchange booth with the aim of buying back the dollar you had previously sold, with the Swiss franc you miraculously have left. It is at this time that you realize that the exchange rates are no longer the same, it is this variation in the exchange rates that makes different successful traders to makes money in the Forex market.

Commonly, the Foreign Exchange Market if normally referred to as the "Forex" or rather "FX", Forex market maybe considered as one of the largest in the world, in fact, it is the largest in the world, when put under comparison with the measly $ 21.5 Billion per day volume, recorded at the NY Stocks Exchange, the Forex market on the other side, is ginormous having with it around $5 trillion, that is in a day's trade. in fact Forex does rocks your Socks!

The currency market can safely be considered well over 300 times much BIGGER! very Huge! But, wait a minute, there is a big Catch! the $5 trillion comprises the entire global Foreign market, although the retail traders, which is us, do trade what is known as spot market, summing to about $1.39 trillion of the total $5 trillion. You can see from the above that Forex market is very, though not as huge as most media wants us to believe.

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