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Foreign Exchange (FOREX)
Term category: Economics, Advanced
In 10 words or less: The market in which currency is traded 24/7.

Definition: The foreign exchange market is a 24-hour-a-day market where currencies are traded.

StockJargon Advice: The FOREX ("FX") market is used by companies in nearly every country in the world.  In order to convert their currencies from country to country, they may make currency trades on the FOREX market.  They also may hedge against currency fluctuations.  Currency trading is also popular among speculators who try to predict exchange rate movements.

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Investing in the foreign exchange market has its own benefits and disadvantages, as this article discusses.

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Commodity Trading
Commodity trading can be quite risky but it is an alternative to stocks and bonds.

Related Books

Getting Started in Currency Trading by Michael Archer
Trading Commodities and Financial Futures by George Kleinman
The Intelligent Investor by Benjamin Graham
Beating the Street by Peter Lynch

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