Forex is short for foreign exchange. The foreign exchange market is an over-the-counter or global market for the trades of different currencies. This market constitutes all financial transactions involving currencies from different countries. It involves all financial transactions involving currencies from different countries.
The term forex is derived from the term foreign. It describes the business of trading currencies. Foreign Exchange is one of the biggest financial markets in the world and is considered as the largest financial market in the world. This financial market decides foreign currency rates for each currency traded. It also includes all financial aspects such as buying, selling, and exchanging foreign currencies at decided or current prices.
Forex is the market that decides the value of a specific currency against another. Trading in forex can be done at any hour, anywhere in the world. It is highly fluid. Therefore, the forex exchange rate never stays the same for a long time. When the values of two specific currencies would differ, this will have an effect on the exchange rate of the other currency as well.
Global Forex Market – The global foreign exchange market includes trading of a wide range of currencies from around the world. It is considered to be the largest financial market with daily trade exceeding $1 trillion. Basically it is the exchange rate of a specific currency against another currency. This market is widely recognized by most of the major banks and is accessible through the online facility. Many small and large business firms use this market as their main source of communication with their customers. Due to its global scope the spot market has become a prominent player in the overall Forex trading.
Spot – A spot deal in Forex deals with currency exchanges on the basis of a particular currency pair. The prices of currencies are evaluated at the opening and closing sessions of the Forex trade. It may include other financial institutions or individuals who wish to buy and sell the same spot contract as the parties involved.
Futures and Forecast – The futures and forecast market are both part of the larger Forex exchange. The futures market is the sale of options on the future dates and prices of commodities. The Forex forecasts evaluate the various economic factors and the trends that may occur in the near future in order to provide traders with the information needed to make wise decisions. Both these markets are very important for Forex traders as they help them make accurate predictions about currency exchange rates.