You may have heard about it, but don’t exactly know what it is. Foreign exchange, widely known as Forex, is the largest market in the world by total trading volume. Simply put, it is the market for changing one currency for another. If you have ever done this, you were literally involved in forex trading.. Forex can definitely be a good source of income if you have the grasp of it. Forex needs thorough understanding of different countries’ markets because changes on the markets affect the exchange rates of their currencies.
On Forex you either buy or sell: someone buys one currency of the pair, while another sells the other. You buy when the currency price is low, and you sell when it is high, and eventually get some profit. Forex trading can be performed through a broker or market maker. Forex is so popular because of its continuous work, 24 hours a day, 5 days in major financial centers in London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
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