Forex is an abbreviation of Foreign Exchange, which is a global decentralized market for buyers and sellers to trade currency at agreed prices. Currencies are always traded in pairs, base currency and quote currency. To buy one currency, you must sell the other or vice versa.
The core traders are banks, corporations, governments and speculators. Forex is traded 24 hours a day, on business days, unlike the stock market that operates during business hours only.
Similar to stocks, currency prices fluctuate according to supply and demand, and traders buy at low prices and sell at a high price. With daily turnover at an average of USD3 trillion, Forex is the largest traded market in the world.
There are many possible currency pairings, but the most traded currencies are USD, EUR, JPY and GBP. The main Forex trading centers are located in London, New York, Hong Kong, Tokyo and Singapore.
The BID = Price to SELL base currency.
The ASK = Price to BUY base currency.
Currency is bought and sold in units called lots.
The main factors that influence supply and demand, and therefore currency exchange rates:
1. Inflation and buying power
2. Interest rates and return on savings
3. Government debt and public sector projects
4. Terms of trade applied to export and import
5. War, political stability and economic performance
6. Tourism

Infographic – www.cmsfx.com
To accept online transactions, Forex brokers will need to obtain a Merchant Account specifically for the FOREX industry.