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INTRODUCTION

FOREX MARKET is the important market of buying and selling foreign currency and is one of the biggest financial market in the world.FOREX exchange market determines the relative values of different currencies and includes tradings not only of major players such as central banks,large companies,investment funds but also of individual investors(e.g. the speculator - is a person who will buy a currency at a lower price and will sell it at a higher price).Speculation represents 90 procents from the daily turnover.

The rate at which a currency pair is traded is known as "the exchange rate".The exchange rates are constantly changing and are affected by supply (ASK) and demand (BID). The daily volume is continuously growing in the global foreign and related markets exchange being the most liquid financial market in the world.The liquidity of Forex maintain the price`s stability and narrow spreads. Forex market is different from the other markets,especially the stock market.It is considered an "Over The Counter" (O.T.C.) market which doesn`t have a specified place of residence so the trades take place through the electronic network or the phone .

The purpose of Forex is to foster trade and investment.The currencies are always traded in pairs such as: for example EUR/USD (Euro/U.S. Dollar) or USD/CHF(U.S. Dollar/Swiss Franc). One of the reasons to trade currencies is to make benefits. For speculators the best moments of trading are with the most liquid currencies ,such as USD,EUR,CHF(Swiss Franc),JPY(Japanese Yen),CAD(Canadian Dollar),AUD(Australian Dollar).

The Foreign Exchange Market("FOREX", "Currency Market" or "FX") is opened daily,24 hours a day,5 days a week,from Sunday to Friday,in all developed countries in the world. Currencies trading starts in Sydney and moves around the world to Tokyo, London, and New York. Investors can respond to currency fluctuations caused by economic, political and social events at the time they occur, without having to wait for markets(e.g.stock exchange market) to open. As with any kind of investment, you need to have some knowledge prior to investing.


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