Forex market trading involves trading pairs of currencies worldwide. Almost every country is involved in forex market trading, where foreign currencies are bought and sold, based on the value of that currency at the time. In fact, Forex market trading is the largest financial market and does more volume in one day than every stock market combined in the world. Forex really is that big!

Two trillion dollars flow through the Forex trading market every single day.  It is a vast quantity of money. Consider how many millions it takes to make a billion…now consider what it takes to make a trillion…and this is traded on a daily basis.

The currencies traded in the forex markets are from every country in the world. Every currency has a 3 letter symbol that represents that country and their currency. For example, the Japanese yen is JPY, and the United States dollar is USD. The British pound is GBP, and the Euro is EUR. When you are trading from one Forex market to another, you can see the symbols used to identify which currency pairs you are trading in.  As mentioned previously, all Forex market trading currency pairs are going to look something like this EUR/USD and AUS/USD, etc. When reading and reviewing your forex statements and online information you will understand it all much better if you are to remember these symbols of the currencies that are involved.

Since all Forex currencies are traded in pairs (USD/JPY for example), some traders specialize in one currency pair, and others trade using many currency pairs. Even if you are doing the trading, as opposed to having a broker trade for you, almost all forex trades occur using a Forex trading account that you set up with a broker. And of course those brokers make a bit off of each trade regardless of whether you make a profit or not.

Some of the most heavily traded currency pairs occur between the Euro and the US dollar and the US dollar and the Japanese yen, and of course the USD and the British Pound. Forex market trading takes place all day, all night through out the markets in various countries due to the change in time zones. As one country opens trading for the day, another closes.

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