Forex currency trading is the act of simultaneously purchasing one foreign currency whilst selling another, mainly for the purpose of speculation. Foreign currency values increase and decrease constantly due to global factors such as economics and politics. The goal of each FX trader is to earn a profit from the fluctuations in the value of one foreign currency against another by actively speculating on which way foreign exchange rates are likely to turn in the future.

Forex trading is conducted over-the-counter (OTC). The phrase “over-the-counter” refers to forex and other instruments that are traded via a dealer network as opposed to on a centralized exchange. The OTC does not have any physical location or main exchange and trades 24-hours every day via a worldwide system of companies, financial institutions and individuals.

Forex is a leveraged instrument, which means that this market is virtually accessible to everyone. You are simply required to put in a small percentage of the full value of your position to set a foreign exchange trade. Because of this, the chance of profit, or loss, from your primary money outlay is considerably greater than in conventional trading