While most people focus their investing on individual companies through the stock market, the forex market allows investors to invest in entire countries by buying and selling foreign currencies. The forex market, often abbreviated as FX, is the most traded financial market in the world accounting for more than 4 billion dollars worth of currency traded on a daily basis.
Trading currencies successfully requires an understanding and consistent research of the world macroeconomy. The goal of forex trading is to figure out which currencies will gain value against other currencies. There are several reasons why one currency gains value against another, including political decisions effecting the countries interest rates and money printing actions, as well as the overall business growth environment of a country.