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The Foreign Exchange Market (Forex) is where currencies are bought and sold, 24 hours a day, 5 days a week. Currencies from all around the world are a vital part of conducting foreign trade and business. Their exchange affects us all, whether you are aware of it or not.
The Forex market is an international Over-The-Counter Market (OTC). This means that it is a self-regulated market without a central exchange or meeting place. Unlike stocks and futures markets, where you have The New York Stock Exchange- a physical location where traders can track, buy and sell stocks.
There are many reasons why stock traders get into the forex market place. The most obvious reason is the return on investments and the speed at which you can grow your account. Typically the forex market is more volatile than the the stock market and brokers tend to offer leverage on accounts ranging anywhere from 20:1 to 500:1.
There are many differences between the Forex market and the Stock market. One major difference is the number of trading alternatives available. In Stocks, you have thousands to choose from, where as in Forex, there are very few.