What is Forex?

Forex and ‘FX’ are shortened terms used for ‘foreign exchange’. Foreign exchange is the exchange of money from different countries. The value of one country’s currency is constantly changing against the value of another country’s currency. Forex traders make money through buying and selling currencies on the foreign exchange market.
What is the foreign exchange market? Markets are places to trade goods, and the same goes for Forex. The Forex ‘goods’ are the currencies of various countries. The Forex market is a money market that never stops. It is the “market”, anywhere in the world, where any exchange of currencies is made. It operates 24 hours a day, on computers all over the world. Foreign exchange market conditions can change at any time because events that happen across the world affect the value of money. The Forex market is the largest market in the world where trading between banks, organizations, investors and individuals happens. More than 2.5 trillion US dollars is traded every day. That comes to almost 29 million USD every second!
How to make money trading in Forex The profit potential comes from the fluctuations (changes) in the currency exchange market. You make money by buying a currency at a particular rate (or price) and selling it again for more than you bought it. The market is highly volatile which means it is constantly changing and therefore offers greater chances to profit but also greater risk. The incentive to trade in Forex is that regular daily fluctuations, say - around 1%, are multiplied by 100.
How Risky is Forex Trading? Losses are unlimited unless you have a 'Stop Loss' on your position. At Easy-Forex® there is always a Stop Loss therefore you cannot lose more than your ‘margin’, the money you are prepared to risk and the rolling fee if it's a Day Trade transaction. However, Forex is risky so only risk what you can afford and is not vital to your well-being.Forex trading can be very risky if you don't use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage. New forex traders can minimize the risks by learning proper risk management and developing a solid trading plan.