Foreign Exchange tradeonlinemarket or forex market is the largest currency trading market place. The market is essentially an over-the-counter trading market. The most important aspect of forex trading is perhaps a proper and detailed analysis of the current and prospective market conditions. Any individual who wishes to trade in the market must keep in mind the past trends and also should carefully look into the future prospects.
The country whose currency is being traded in should be stable in all respects including the gross domestic product of the country, the financial stability of the nation, the foreign relations of the country along with the ongoing rate of inflation of the country all affect the forex market to great extents.
There are various forex trading markets in the world. The 6 major currencies in forex trading market are situated in London, Tokyo, Frankfurt, New York, Zurich, and Paris. The trading is done around the clock due to the various time zones in which these 6 markets are located. This can be understood by the simple example of the contrasting time zones between the European and Asian markets.
The opening of the trade in the European markets generally follows the closing of trade in the Asian markets and vice versa. The markets comprise of various participants including various banks, money managers from across the globe, multinational firms that have a relatively large setup, money brokers throughout the world, private speculators and individual traders. Any one who wishes to start trading must get himself a forex trading account with high balance.
The profits are there to be made but it is strongly recommended that the individual practice with a demo account for a couple of months before getting into mainstream trading to avoid heavy initial losses. With some practice and tactical ability, huge amounts of profits can be made in the forex market.