Brief information about forex

The term Forex trading is short for foreign exchange market, which is a place where different currencies are constantly exchanged by millions of people around the world. Tourists traveling from one country to another must exchange currency to pay for local products or services

A lot of euros would be absolutely useless for Italian tourists who want to visit the Sphinx in Egypt, because it is not the local currency, tourists will have to exchange euros for the local currency Egyptian pounds at the current exchange rate that day without even boarding. residents of one country exchange currency with another country whenever they buy foreign goods.

For example, if you live in the US and want to buy a bottle of good French wine, you can pay for it in dollars, but the wine is already paid for in euros. Somewhere along the way, either the wine producer or the American importer had to exchange the equivalent of our dollar for Euro.

Unlike the New York Stock Exchange or other stock markets, there was no central location for foreign currency exchange, and currency trading was conducted electronically over the counter (OTC). What does it mean that all transactions take place over a computer network between traders around the world? And not on one centralized exchange.

The Forex market is open 24 hours a day, five days a week, the need to exchange currency is the main reason why the Forex market is the largest and most liquid financial market in the world. It outperforms other markets, including the stock market, with an average trading volume of about two billion dollars a day.

So why should anyone trade Forex? ask three different people, you’ll get more than three different answers. The most cited reason is to make money. This is a perfectly legitimate motivation, we all live in a world where money, even if it can’t buy everything, can certainly make life a lot more enjoyable.

There are people who trade Forex because they see it as a form of gambling and bet on the winning number, it can really be a lot of fun, especially when you win, and there are others who trade Forex just for personal enjoyment. make the trading system work for them and achieve the results they are after. We are always satisfied when we make the right choice.

A common factor as to why people trade in Forex is that one way or another these people get what they want, money, pleasure, or maybe they trade for all three reasons

Forex trading is a very simple concept

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