What is Forex?
The foreign exchange market is a global decentralized or off-exchange market for currency trading. This market determines the foreign exchange rates for each currency. It includes all aspects of buying, selling and exchanging currencies at current or specified prices.
The Forex market is the world’s largest market with a daily turnover of $ 5 trillion. All global stock markets combined do not come close to that. But what does that mean for you? Take a look at Forex trading and you may find some exciting trading opportunities that are not available with other investments.
How Forex Trading is work?
The Forex market is open 24 hours a day, 5 days a week, and only closes during the weekend. All forex trades involve two currencies because you’re trading on the value of a currency against another. The EUR/USD, the most traded currency pair in the world. The euro, the first currency in the pair, is the base, and the US dollar, the second, is the quote currency . When you see a specific price on the platform, the rate is the value of one euro in US dollars. You always see two prices because one is the Buy price and the other is the Sale Price. You can buy or sell the first currency in the pair 1. The Forex market is a worldwide market for exchanging national currencies against each other.
Key Elements in Forex: –
1. The Forex market is a worldwide marketplace for exchanging national currencies against one another currency.
2. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.
3. Currencies trade against each other as exchange rate pairs. For example, EUR/USD.
4. Forex markets exist as spot (cash) markets as well as derivatives markets offering forwards, futures, options, and currency swaps.
5. Market participants use Forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.
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