Forex Market is a bit different from Stock Exchange market. In foreign Exchange Market, traders trade for currency pair, such as eur/usd, gbp/usd, usd/jpy, etc.

Unlike the stock market, the Forex Market (currency market) is a relatively new player with the investment world. Today’s current foreign exchange market model began in the early 1970’s, and today it is the largest financial market around, even surpass the stock market. With the trading partners to exceed $ 2 trillion U.S. dollars per day, the Forex market attracts more and more investors all the time. Before an investor begins trading on the forex market, he should understand the basics of their work exchange rates.

In fact, the rate is the exchange rate between two currencies. Most currencies are traded, or paired up against the dollar. The five most frequently traded currencies on the market, the dollar (USD), Euro (EUR), the Yen (JPY), the British pound (GBP) and the Swiss franc (CHF). Some other currencies are traded, the Australian dollar, the Canadian dollar and the Hong Kong dollar.

Average daily global turnover in traditional foreign exchange market transactions total $ 2.7 trillion in April 2006 after IFSL estimates based on the biannual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Total revenue, including the non-traditional foreign exchange and derivatives products traded on exchanges, an average of around $ 2.9 trillion per day. This was more than ten times as large as the combined daily turnover in the whole world of stock markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The wide choice of execution venues such as Internet trading platforms has also made it easier for retailers to trade on the foreign exchange market.