How Forex Trade?

How does forex trading work?Many U.S. and international companies provide online trading softwareand services for individuals (traders) who want to speculate on theexchange rate differences between two currencies. In doing so, thesespeculators buy or sell currencies with the objective of making aprofit when the value of the currencies changes in their favor, whetherthose fluctuations derive from market news, supply and demandprinciples, or geo-political events taking place throughout the world.In addition, the forex market is available to trade 24 hours a day, 5.5days a week, allowing traders more freedom to trade when they want to,not just when an exchange is open.Popularity of forex trading.The growth of trading OTC foreign exchange (known as retail FX orretail forex trading) has more than doubled from 2004 to 2007. Manyfinancial experts suggest this growth curve is projected to continuewell beyond 2010. What has led to this phenomenal growth? Innovation,competition and consumer demand.