FOREX trading is all about trading foreign currency, stocks, and similar  type of products.
The currency of one country is weighed against the  currency of another country to decide value. The measure of that  foreign currency is taken into consideration when trading stocks on the  FOREX markets. Most countries have control over the value of that  countries value, involving the currency, or money. Those who are often  involved in the FOREX markets include banks, large businesses,  governments, and financial institutions.A forex market trade is one that  involves at least two countries, and it can take place worldwide.
The  two countries are one, with the investor, and two, the country the  money is being invested in. Most all transactions taking place in the  FOREX market are going to take place through a broker, such as a  bank.The foreign exchange market is made up of a variety of transactions  and counties. Those involved in the FOREX market are trading in large  volumes, large amounts of money. Those who are involved in the FOREX  market are generally involved in cash businesses, or in the trade of  very liquid assets that you can sell and buy fast. The market is very  large. You could consider the FOREX market to be much larger than the  stock market in any one country overall.
Those involved in the FOREX  market are trading every day twenty-four hours a day and sometimes  trading is completed on the weekend, but not all weekends.You may be  surprised at the number of people that are involved with in FOREX  trading. In the years 2004, nearly two trillion dollars was an average  daily trading volume. This is a huge number for the number of daily  transactions to take place. Think about how much a trillion dollars  really is and then times that by two, and this is the money that is  changing hands every day!
The FOREX market is not something new, but  has been used for over thirty years. With the creation of computers, and  then the internet, the trading on the FOREX market continues to grow as  increasingly people and businesses alike become aware of the  availablily of this trading market. FOREX only accounts for about ten  percent of the total trading from country to country, but as the  popularity in this market keeps to grow so could that number.
Online FOREX trading
Online  FOREX trading is a huge business
The Foreign Exchange Market better  known as FOREX - is a world wide market for buying and selling  currencies. It handles a huge volume of transactions 24 hours a day, 5  days a week. Daily exchanges are worth approximately $1.5 trillion (US  dollars). In comparison, the United States Treasury Bond market averages  $300 billion a day and American stock markets exchange about $100  billion a day.he Foreign Exchange Market Established
The Foreign  Exchange Market was established in 1971 with the abolishment of fixed  currency exchanges. Currencies became valued at 'floating' rates  determined by supply and demand. The FOREX grew steadily throughout the  1970's, but with the technological advances of the 80's FOREX grew from  trading levels of $70 billion a day to the current level of $1.5  trillion.
The FOREX is made up of about 5000 trading institutions  such as international banks, central government banks (such as the US  Federal Reserve), and commercial companies and brokers for all types of  foreign currency exchange. There is no centralized location of FOREX  major trading centers are located in New York, Tokyo, London, Hong Kong,  Singapore, Paris, and Frankfurt, and all trading is by telephone or  over the Internet. Businesses use the market to buy and sell products in  other countries, but most of the activity on the FOREX is from currency  traders who use it to generate profits from small movements in the  market.
Even though there are many huge players in FOREX, it is  accessible to the small investor thanks to recent changes in the  regulations. Previously, there was a minimum transaction size and  traders were required to meet strict financial requirements. With the  advent of Internet trading, regulations have been changed to allow large  interbank units to be broken down into smaller lots. Each lot is worth  about $100,000 and is accessible to the individual investor through  'leverage' – loans extended for trading. Typically, lots can be  controlled with a leverage of 100:1 meaning that US$1,000 will allow you  to control a $100,000 currency exchange.There are many advantages to  trading in FOREX.
Non-bank  Foreign Exchange Companies
Non-bank foreign exchange  companies offer currency exchange and international payments to private  individuals and companies. These are also known as foreign exchange  brokers but are distinct in that they do not offer speculative trading  but currency exchange with payments. I.e., there is usually a physical  delivery of currency to a bank account.
It is estimated that in the  UK, 14% of currency transfers/payments are made via Foreign Exchange  Companies. These companies' selling point is usually that they will  offer better exchange rates or cheaper payments than the customer's  bank. These companies differ from Money Transfer/Remittance Companies in  that they generally offer higher-value services.
Liquidity - Because  of the size of the Foreign Exchange Market, investments are extremely  liquid. International banks are continuously providing bid and ask  offers and the high number of transactions each day means there is  always a buyer or a seller for any currency.Accessibility The market is  open 24 hours a day, 5 days a week. The market opens Monday morning  Australian time and closes Friday afternoon New York time.
Trades can  be done on the Internet from your home or office.Open Market Currency  fluctuations are usually caused by changes in national economies. News  about these changes is accessible to everyone at the same time there can  be no 'insider trading' in FOREX.No commission Brokers earn money by  setting a 'spread' the difference between what a currency can be bought  at and what it can be sold at.
Forex optionsThe options of forex have  much in common with the businesses of stock market. They are more  reliable by limiting risks and by raising the benefit during the trade  of the market. An investor can choose between two principal options, the  first of which is traditional. He leaves the purchaser the good  currency of purchase at the price and time preconcerted but doesn 't to  encourage it to do that. If a tradesman seizes the occasion of the  options of forex and during agreed time the currency being bought  appreciates, the tradesman can sell this currency with the advantage.  The options of forex give to investors another tool which them  assistance to reduce to the maximum of the losses and to raise benefit,  they are extremely popular at the periods of the economic report. But if  the currency underestimates loses of a tradesman whom they pay the  premium this option.
The second type of options of forex is called  SPOT (option dealings of simple payment). This type depends on the  tradesman of forex; it is a forecast of the tradesman on what they  provide will occur on the market of forex. If the tradesman is made a  success of the possible benefit can be unlimited and if the SPOT not is  successful the tradesman loses only the premium.
The transactions in  options on FOREX are extremely risky. The options of the 'salesmen and  the purchasers should become with the current of the type of option  which they envisage to trade and of the risks connected with him.
He  's interesting to appear outside the point to which the value of the  options must go up so that the position remains salutary, fascinating of  account all the costs of transaction and, naturally, the premium.
The  options 'purchasing can compensate for or exert the options or let the  options expire. The exercise of an option has in payment in cash or like  consequence the purchaser obtaining or giving the basic interest. If  the options which you bought expire without value, you lose the  investment which includes/understands the premium of option. If the  option is on a powerful position, the purchaser receives a position of  opening of FOREX with responsibilities associated with margin. You  should remember that the costs of transaction on FOREX are usually zero  without the commission. If you intend to buy deep-outside-of-the-money  options, you should realize that the possibility of obtaining the  benefit of such options is usually rather distant.
In general, the  sale of, granting or writing option are riskier than options to buy. The  salesman can confirm a loss above this quantity though there 'sA fixed  the level of the best quality put at the current by the salesman. The  salesman is responsible for a additional-margin to keep the position on  the same level if the market moves without success.
The salesman  also meets a risk of the purchaser employing the option and the salesman  will have to arrange the option cash, to obtain or provide the basic  interest. If the option is covered by the salesman of a corresponding  position in the basic interest or a future or a different option the  risk can be less. If the option is on a powerful position the salesman  receives an open position of FOREX with associate put in margin  responsibilities. If the option isn 't covered the risk of loss is  unlimited.
In some authorities the brokers left the payment given to  later of the premium of option, bringing the purchaser to the  responsibility for the payments of margin isn 't then the quantity of  best quality. He 's still possible that the purchaser loses the costs of  premium and transaction. The purchaser is responsible for any unpaid  premium which is already late when the option is exerted or expires. The  stockmarket is often associated with the options; the market of foreign  currencies (of FOREX) leaves always also commercial these single  derivatives. Retail dealers much of occasions to the minimum to reduce  the risk and to increase grace of benefit with the options.
Benefits of Trading in the Forex Market
Investors  and entrepreneurs are moving away from conventional financial markets  such as commodities futures, bonds, stocks and other commodities and  prefer to invest their money in the Forex market. The reason behind this  migration is due the fact that the Forex market has lucrative and far  better benefits when compared to any other type of financial market.
The  power of Forex market is such that even a seasoned Commodities or  Stocks trader will find out in a short time the advantages of Forex over  their traditional trading avenues. It is possible for you to make up to  $3000 by trading in the Forex market for just 30 minutes everyday. When  compared to futures market, trading currencies in Forex market involves  less risk. It is also far easier and more profitable than trading  stocks.
Following are some of the benefits of trading in the Forex  market.
• The most unique feature of Forex market is that it is open  24 hours a day. Unlike trading stocks where you have to wait for an  opening bell, you can buy or sell currencies whenever you want in the  Forex market. This also gives you the added advantage of choosing the  right time to make your transactions.
• Forex market has a huge  trading volume in the range of about $1.5 trillion. The Forex market is  about 30 times larger than all of the U.S equity markets put together.
•  As far as Forex day trading is concerned, you can make a profit out of a  raising market, as well as from a falling market. This is because you  have the power to decide whether to buy or sell a currency after  carefully analyzing the market trend.
• You can trade in the Forex  market from anywhere in the world. If you have a computer with an  internet connection, you can make your transactions from anywhere.
•  Forex trading requires considerably less initial investment. You can  even start your Forex career with an investment of as low as $300. Once  you learn the ropes of the trade and make a success out of your  strategy, you can increase your trade up to 200 times your initial  investment. Moreover in Forex market you just need to post a meagre 1%  margin when compared to a 50% margin in the stock market.
• The price  movements are easily predictable in the Forex market. Though the price  movement themselves are highly volatile, the foreign currency market  follows a pattern that is easily predictable with proper technical  analysis.
• In Forex trading you don’t have to pay any commissions to  brokers on transactions.
To sum it up, Forex trading has far more  advantageous than other trading platforms and gives you more control  over the features and freedom to choose. You can make huge profits if  you know what you are doing.
       | Exchange |        Last |        Change |       
         DJIA® * |        0  |        0  |       
         Nasdaq |        2370.75  |        2.13  |       
         S  & P 500 |        1146.24  |        5.04  |       
         MerVal |        2652.29  |        8.87  |       
         Bovespa |        70229.35  |        799.57  |       
         TSX |        12363.08  |        -5.57  |       
         IPC |        33807.48  |        477.14  |       
         AEX |        333.78  |        -0.61  |       
         FTSE 100 |        5592.90  |        44.28  |       
         DAX |        6211.34  |        -17.68  |       
         CAC 40 |        3692.09  |        -23.09  |       
         Nikkei |        9404.23  |        34.88  |       
         Hang Seng |        22358.17  |        -20.50  |       
         Shanghai |        2655.65  |        44.98  |       
         Straits |        3130.90  |        33.27  |       
         Jakarta |        3547.11  |        45.81  |       
         NZX 50 |        3212.93  |        34.84  |       
         TSEC |        8244.18  |        6.40  |       
         Sensex |        20445.03  |        375.92  |       
         Nifty |        6143.40  |        113.4  |