Forex trading is short for foreign exchange trading and, as such,represents the market in which one country’s currency is quoted against that of another, and therefore provides the basis for the exchange of one currency with another, or to agree a rate for any future purchase. Without these market rates being quoted, parties wanting to exchange their currency, would be forced to agree a rate for each contract on an individual basis. An interesting feature of the forex market is that it has no centralized exchange, such as in stocks or futures, and as a result all trading is conducted over the counter (OTC) which simply means that it is not conducted in a regulated environment, and indeed is often referred to as ‘off exchange’ trading. The forex market allows businesses, investors and traders to take advantage of the change in currency rates by taking a view as to the likely future direction of one currency relative to another. As a result all currency rates are quoted in pairs.