What is Forex?
The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world.
From analyzing economic reports and chart patterns, the individual trader attempts to determine trends in the values of currencies. A trader speculates on the fluctuation in exchange rates by buying and selling currency pairs.
Fundamental analysis involves analyzing the value of a nation’s currency based upon macroeconomic indicators, central bank actions and political affairs. Based on this analysis a Forex trader tries to predict market changes.
Technical analysis involves studying patterns of price movement on the chart in order to predict the direction of current and future trends in the Forex market.