The Forex Market

Contrary to popular belief, the unification of many European currencies into one single currency (the Euro) has only strengthened and rendered more popular the usage of foreign exchange as an investment, a hedging instrument and as a tool for speculation. The most marked development has been the democratisation of foreign exchange in the retail forex market, the tightening of spreads and drastic improvement of trading conditions for the small trader.

In practically all investments there is a Foreign Exchange (Forex) transaction to be made. Whether in international trade, import-export, or practically any type of business, resorting to some form of forex foreign exchange operation is practically unavoidable. It is not surprising then that the forex market is by far the largest in the world, in fact it is approximately 32.5 times larger than all equities markets put together.