Foreign Exchange market or Forex is the biggest financial market in the world and actually it is several times bigger than the stock market. Here currencies are exchanged for each other and the trading has several exclusive characteristics that will surprise the first time trader. Here we will look in and see what the currency trading is and why the Forex market is attracting more and more clients. What is Forex? When exchanging one currency for another you pay the exchange rate which is the price of the currency exchanged.
In finance, a trade is an exchange of a security (stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument) for "cash", typically a short-dated promise to pay in the currency of the country where the 'exchange' is located. The price at which a financial instrument is traded, is determined by the supply and demand for that financial instrument.