Forex for Absolute Dummies

Forex (foreign exchange) refers to the foreign currency exchange market, the world’s largest financial trading market. Pass yourself as a forex expert with these buzz words: • Bid – to buy • Ask – to sell • Liquidity – financial ease of transaction, i.e. cash • Trading volume – the amount traded • Bid/ask spread – the difference between the proposed buying price and the actual selling price • OTC – over the counter • Exchange rate – the difference between currency values; for instance, a Canadian dollar is valued at .86 of a US dollar • Hedge funds – large mutual funds companies that control vast amounts of money and are able to manipulate the value of a currency through speculation • Central bank – the national bank of a nation, View the rest of this article