The Forex market is a worldwide market of currencies (called instruments). The market measures the value of a currency in terms of another currency’s value (e.g.. $1 = £0.66).To get more news about Forex Mirror Trading, you can visit wikifx.com official website.

Nowadays our world is a single, large global market. Different currencies change hands anytime, any place – for trading purposes, investments, loans, and partnerships. The globe is an enormous market where the forces of supply and demand are constantly changing due to the range of events taking place each and every day.

Did you know that almost everyone has taken part in Forex activities? Changing currency when flying to a foreign country for a holiday or business trip, giving a quote to a client, or even chatting with friends or colleagues about the dollar, euro, or other currencies, are all ordinary activities that participate in the Forex market.

The Forex market is the most traded market in the world, larger than any other market. Daily trading volume amounts to approximately 5 trillion dollars!! For comparison, the biggest stock market, the NYSE (New York Stock Exchange), has a daily turnover of around 50 billion dollars (which is 100 times less than Forex). Amazing, right? There is no other market equal to the Forex market.

What is Forex? Let’s go back to the holiday example. Say you’re on a short vacation trip from your home in New York to Rome, Italy. By landing at the airport and changing your dollars into Euros you participate in a Forex transaction. A few days later, after flying back from Rome to NY, you change the Euros you have left back into dollars at a slightly different price. In the second act, you executed an opposite transaction to the first, closing a circle of buying and selling of one currency for another.
Until the 1970s, the Forex market did not act like an enhanced, modern market, reacting to changes in supply and demand. Since then, all of this changed. The market became global and rates fluctuated, moving in response to market forces. Over the years the Forex market got bigger and bigger until it reached its current size.

In the past, the only real forces in the market were big commercial ones such as banks and big firms trading according to their business needs (for example, a company would hold Japanese yen if they had business activity in Japan). Things are different today – Forex is now extremely popular with private traders, large and small. Since the late 1990s, the rules of the game have changed, thanks to the Internet revolution. Banks, forex brokers, and financial companies now offer comfortable, simple, online forex trading platforms, which let ordinary people (medium and small players) trade the Forex market for themselves.
What do we trade?
First, it is important to get used to the fact that in Forex we trade currencies, not physical goods. Currencies are goods like any other, but when you trade forex online you don’t get to see or touch the money until you withdraw the profit from your account. The idea behind buying currency is very simple. If you believe that a currency’s value will rise, you buy it with another currency and hold it until you no longer believe it will rise further. If you think a currency’s value will fall, you sell it. Whether you buy or sell you are actually exchanging currencies – buying one currency and selling another (e.g.. buying the dollar and selling the euro).

When you buy a forex pair you always buy the first currency alongside the second one. This means that you are selling the second currency. For instance, if you buy USD/JPY you are buying the dollar and selling the Yen. It is the same when you sell a forex pair; you always sell the first currency and buy the second.

Currency instruments are always traded in pairs. Imagine a currency pair as a couple of boxers in the ring, caught up in an endless struggle over who is stronger. During the match, each has their stronger and weaker moments, their ups and downs. Sometimes they rest and sometimes they attack.