What is Forex?

There are many currencies in the world and their prices fluctuate against one another and change value over time. This creates the potential for investment and/or speculation. Forex (short for FOReign EXchange) is the market where international currencies are traded against one another. Evolution of communication technologies in recent years has made it possible for millions of individual investors to access Forex, market which not so long ago had been accessible only for banks and large institutional investors. FOREX is one of the newest financial markets and it is a good idea to learn how it is different from other markets. Currency rates are determined by many factors, such as political events and economic developments in national economies. They are also determined by the investor attitude influencing the market at any given moment. If you were able to foresee these developments you would be able to make profitable trades on Forex. However, if you assessment is not correct, you may suffer significant losses. Just like anything else the key to successful Forex trading is knowledge.