Forex

Forex is a platform where traders can exchange different countries currencies at a rate determined by the market. There are two reasons why currencies are traded. One reason is for the payment of goods and services by international companies. The other reason is because traders speculate on the movement of the exchange rates and seek to gain profits from such fluctuations. Exchange rates fluctuate because the demand for a currency is always changing and this change is reflected in the differing rates. This explanation is actually an oversimplification of the Forex market, but its a good place to start.