Find out what Forex trading is and whether it's something you could, or should look at having a go at.
The foreign exchange market, or FOREX as it is better known, is the world's biggest and most heavily traded commodity market. FOREX's popularity stems from the fact that it is constantly fluctuating and open 24/7 so that you can trade whenever you like.
All currency trading takes place on the foreign exchange market. This is when you buy one currency at a certain price and then, ideally, sell it at a higher price to make a profit.
Although any currency issued by any country can appear on the foreign exchange market, most FOREX trades are made within the major currencies, such as:
- Great British Pound (GBP)
- Japanese Yen (JPY)
- United States Dollar (USD)
- Swiss Franc (CHF)
- Australian Dollar (AUD)
- Euro (EUR)
You can also trade on the movement of less mainsteam currencies; these are usually split into the minors (such as the Canadian dollar and the New Zealand dollar) and the exotics (such as the Thai Baht or the Malaysian Ringgit).
It's worth noting that the minor/exotic destinction refers more to the fact that these currencies are less stable and more subject to change than the "majors", rather than the size of the country.
