Forex, or Foreign Exchange, is the simultaneous exchange of one country’s currency for that of another. Over the last three decades the foreign exchange market has become the world’s largest financial market, with over $1.4 trillion USD traded daily. By comparison, the NYSE daily volume averages $25 billion per day. There is no central exchange of physical location, and trading takes place over-the-counter, 24 hours a day.

Until recently, the forex market wasn’t for the average trader or individual speculator. With the large minimum transaction sizes and often stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market, including fantastic liquidity and the strong trending nature of the world’s primary currency exchange rates.

The investor or trader is looking to purchase or sell one currency for another with the hope of making a profit when the value of the currencies change in favor of the investor, whether from market news or events that take place in the world.