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if you have ever traveled to a foreign country you may have needed to exchange your money if so youve already participated in forex trading Forex is the short form of foreign exchange well Forex is a bit more than that for example companies buy goods from other countries in order to buy them they need to obtain the local currency first just like us when going on holiday the difference is they will exchange huge amounts when these companies exchange these huge amounts they will actually move the price because the demand for the currency that they need increases when the demand increases the price increases with all this exchanging going on around the world the exchange rates constantly move this is how it works when currencies are exchanged they have a certain price the exchange rate as in any market the price of a currency is determined by the law of supply and demand if there are many people or companies that want to change euros into dollars the price of the dollar will rise agains