The “foreign exchange market” or Forex is the largest financial market in the world. Before you know in detail all aspects of this foreign exchange performed in the forex market, a little introduction is necessary.

The word “exchange” probably makes you remember the necessity of a tourist in a foreign country, who has to exchange his currency,  because the foreign state doesn’t accept it. Tourism is not the only case of a currency exchange need. In fact business or foreign trade enterprises have the same necessity.

Suppose that you are a multinational enterprise,  or an international firm, obviously you have to trade with other countries. This means,  that you have to exchange currency continually.

For example,  an international firm from Italy trades with another firm from Russia. The italian firm has to exchange euro into  ruble,  because the Russian buyer want to be paid in its country’s currency. In some cases, it is also possible that the seller wants to be paid in U.S. dollar, even if it is not the currency’s country neither of the buyer and nor of the seller. After this brief introduction we can explain,  what you can do in the forex market. You can exchange currency to trade with foreign countries: to buy goods, to pay your personnel or costs etc. The second kind of operation,  that you can do in the fx market is to speculate on movements of stock prices and exchange rates.
This means that you have to pay attention to the fluctuation of prices and movements, which are influenced by two important factors: macroeconomic situation and monetary condition.

The particular characteristic of this market consists on the possibility of trading 24 hours a day and where you want, because you operate only with a computer and Internet. Moreover you can choose between the following financial centers: Tokyo, London, New York, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. These financial centers are located in different areas of the world, that is to say countries of various time zones. This means,  that when a financial center has a break,  there are other financial centers located in other part of the world, that are opened.

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