| The foreign exchange markets are situated all around | | | | were no longer fixed. The banks and large investors |
| the world. Currency trading is a global activity. Every | | | | quickly saw the potential for making money from the |
| country in the world uses money and needs to | | | | changing prices. |
| change that money into other currencies in order to | | | | The main forex marketplaces are the big financial |
| trade or interact with other nations. | | | | centers of the world. London sees the highest |
| Currency exchange happens at every level of | | | | activity with New York second and Tokyo third. |
| society. As an individual, you may have changed | | | | Other major players are Sydney, Zurich and |
| money when traveling on business or on vacaation. | | | | Frankfurt. |
| Or maybe you have sold something on eBay to | | | | Originally you had to be in one of those places to |
| somebody in another country. Their payment comes | | | | trade money, or at least have a telephone |
| in to your account in their own currency, and the | | | | connection with a broker who was there. It was |
| bank or other payment processor such as PayPal | | | | very difficult for somebody who was not on the |
| changes it for you. That is currency exchange at the | | | | spot to act fast enough to react to the sudden |
| root level. | | | | fluctuations in price that can happen in the forex |
| Foreign exchange or forex trading has a different | | | | markets. |
| purpose, however. When you are trading on the | | | | But modern advances in technology have changed all |
| foreign exchange markets you are not buying | | | | of that. Since the rise of the internet it has been |
| another currency because you need it. You are | | | | possible to trade on your own account from |
| buying it in the hope that it will rise in value, so you | | | | anywhere. This means that it has become easier and |
| can change it back and end up with more money | | | | easier for the little guy to get a piece of the action. |
| than you started out with. | | | | While some people never think about foreign |
| Of course, it is risky. The price movement could go | | | | currency from one overseas trip to the next, others |
| against you and then you would end up with less | | | | are studying charts and financial information or even |
| money instead of more. So you will want to gather | | | | using automated software in the form of forex |
| plenty of information about currency trading before | | | | robots to make money from the rising and falling |
| you start. | | | | prices with the aim of becoming financially free by |
| Forex trading began in the 1970s when the major | | | | trading on the foreign exchange markets. |
| currencies were deregulated so that their values | | | | |