The word Forex is the acronym of: “foreign exchange market”. Why foreign? And why foreign exchange? Because forex is a financial worldwide market,  where you can trade foreign currencies. Probably you already know the need to exchange currencies for the foreign trade, business and tourism.

For example if you come from England and you want to spend your holidays in France, you know that you have to exchange your currency,  because the pound sterling is not accepted in France. You have to exchange your currency,  also if you want to import champagne from France, because often sellers want to be paid in their country’s currency, or very often in U.S dollars. In fact it could happen that a buyer pay in U.S. dollar,  even if both traders don’t come from United States.

To understand what you can do in this market, you have to take in consideration the following most common goals of the forex market’s traders:
1.  to exchange currencies to pay expenses, wages or products in other countries
2. to have profit by speculating on movements of stock prices and exchange rates. Stock prices and exchange rates are so variable, that these traders have to analyze every fluctuation.
Don’t forget that macroeconomic conditions and monetary flows affect these fluctuations.

The forex market has an important advantage: you can trade wherever and whenever. There is no marketplace and no break. This means that you can trade via computer 24 hours a day, because this worldwide virtual market takes advantage of the different time zones of the world. For example, when the market in Tokyo closes, you have the possibility to trade in other financial centers like: London, New York, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.

Internet forex online: diagnose forex