Forex
means Foreign Exchange. Forex market is very large and growing.
Trading is conduct mostly either through telephones or through electronic
trading networks. Banks, Insurance companies and other financial institutions
use the forex market to manage the risks associated with fluctuations in
currency rates. Foxes trading involve high level of risk and may not be
suitable for untrained investors. It requires constant monitoring and to
understand the relationship between the currencies and their rates. Before
start trading one has to open an account with a forex dealer. The investor
should have constant touch with currency exchange rates since there will be lot
of fluctuations in the exchange rates. If one is not cautious he/she may loose
money. If one is using Internet based or other electronic system for trading,
in the event of system failure, one may loose orders or order priority and
result in loss of investments too. The investor should also know about the foreign
currency scam to avoid losses.