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The recent trends in broadband wireless communication systems are demand for high data rates, large transmission range and minimum end to end delay. This is necessary to access the services such as Internet, Video conferences, and Multimedia applications. WiMax (Worldwide Interoperability for Microwave Access) technology provides Broadband Wireless Access (BWA) in metropolitan areas with a simpler installation and lower cost compare to wired networks. To understand the working of WiMax system and the role of various parameters on the system performance, the simulation model of WiMax physical layer using MatLab 7.5 version has been developed. Efforts have been taken to study the Bit Error Rate (BER) performance of this model under different channel conditions. Efforts are also taken to understand the effect of various Modulation techniques, Coding rates, cyclic prefix factors and FFT size on the system performance. The idea is to help the beginner to understand the system and to make the best possible system selection under different propogation conditions.