FOREX BASIS

Currency trading or forex trading may seem complicated at first glance, but the currency trading basics are not that difficult to understand. Currency trading is simply the act of exchanging one currency for another on the currency market. Every time a family changes money to go on vacation or a company makes a foreign purchase, a transaction on the forex market is carried out. The currency market exists only when a transaction is made. Unlike other financial markets such as the stock or bond market, there is no forex exchange and neither any regulating body. The market that is commonly referred to as the currency market is the banks internal market called the Interbank market. Because of this, it has traditionally been difficult to trade forex for money, but this all changed when the internet brought unlimited possibilities to connect traders to the exciting world of forex trading.