What is forex?
The Retail Off-Exchange Foreign Currency Market, also referred to as the "Forex" market is a very large, growing and liquid financial market.  Forex is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.

Where is the central location of the Forex Market?
Forex Trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC), due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

When is the Forex market open for trading?
A true 24-hour, 5.5 day/week market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York.

Who are the participants in the Forex Market?
Banks, insurance companies, large corporations and other large financial institutions all use the forex markets to manage the risks associated with the fluctuations in currency rates. In recent years, however, a number of firms have begun offering forex contracts to individual investors; however it is important to note that these individual investors make up a very small part of the market. 

What are the most commonly traded currencies in the Forex market?
The most often traded or 'most liquid' currencies are those of countries with stable governments, respected central banks, and low inflation, which include the US Dollar (USD) , Japanese Yen (JPY) , Euro (EUR) , British Pound (GBP), Swiss Franc (CHF) , Canadian Dollar (CAD) and the Australian Dollar (AUD).

 
What is Margin?
Margin is essentially collateral for a position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50% which means an investor has double the buying power. In the forex market leverage can range from lower than 1% or higher than 2%, giving investors the high leverage needed to trade actively. Of course, trading on margin will increase your risk.