When buying stocks and bonds, the goal is to profit from dividend and interest income and appreciation in value. In the forex market you buy or sell currencies which are traded in pairs, with the goal of trying to profit from appreciation or depreciation of one currency versus the other. Knowing when to buy or sell a currency may appear daunting for those unfamiliar with the forex market but there are some basic guidelines forex traders use to spot trading opportunities.
FOREX stands for Foreign Exchange (Foreign Currency Exchange). The Foreign Exchange Market (FOREX) is the largest financial market in the world. But, what is a currency? What operations can be found in the forex market? What advantages can we draw from this market?