About Forex

International currency market (Forex) was formed in the mid 70s when the rate of one currency to another was defined by mutually agreed exchange rate.

Today the trading volumes of the currency market are bigger than in all other markets. Forex operates with turnovers of several trillions US dollars every day. Forex is an attractive market for investors all over the world as it has high liquidity and profitability.

Forex became a major income source for the banks. Such banking institutions as Chase Manhattan Bank, Sosiete Generale Bank & Trust, ABN-AMRO Bank, Citibank, Barclays Bank get their biggest revenue from currency operations.

Latest technological inventions has made it possible to trade on Forex with small capitals, even for investors with less than decent amounts. So Forex attracts petty investors and this will increase the liquidity of this market.

Forex has more benefits for investing:

• you can trade 24 hours a day;
• all transactions are done very quickly;
• no commissions are taken.

All you need to trade on Forex is to open an account at a brokerage company. After that you'll get permission to trade the sums which are up to 100 times bigger than your margin. It is called leveraging.

On Forex you buy and sell various currencies. The prices for the currencies are constantly changing. Traders have to buy the currency (if the rate has to grow) or sell it (if the rate falls down). That's It!