What is Forex? Why invest in Forex?

The Foreign Exchange Market - FOREX 

The currency market is a market inter-bank or inter-dealer that was established in 1971. He is an "Over-The-Counter", which means that transactions are conducted between the 2 parties agree to negotiate by phone or electronic network. The Trading this way is more centralized, as is the case for the large market shares (eg, NYSE, ASE, CME), or as in the futures market in foreign exchange and options on currencies, which are negotiated in special markets. The dealerships often warn their rates using a distribution network, such as those provided by Reuters or Bridge. Then, the "dealers" use of information from these sources to confirm the rate and operation. 

The main centers of currency today are: London with about 30% of the market, New York with 20%, 12% Tokyo, Zurich, Frankfurt, Hong Kong and Singapore, with about 7% each, followed by Paris and sydney with 3% each. 

In terms of volumes of change, the Forex market is the largest in the world with daily volumes exceeding 500 ¡1 trillion dollars!. This will no point of comparison with the market "bond" or actions. For example, the New York Stock Exchange (NYSE) has a daily volume of 60 billion U.S. dollars. In this way the Forex market is by far the greater liquidity in the world until this time. In fact, with these volumes of change, it is impossible for one individual or one company affect the exchange rate. In fact, even central banks and governments are incredibly difficult to change the course of the currency with higher liquidity such as the U.S. dollar, Japanese yen, Swiss Franc, Euro, Canadian Dollar or Australian Dollar. 

The Forex is a market that really is open 24 hrs. a day, 5 days a week. There are "dealers" in each of time zones. The trading starts in Sydney on Monday (this corresponds to 3 pm EST on Sunday) and was moving around the world every day by the different centers to close on Friday afternoon at 4:30 pm EST in New York.