Forex

Forex, also known as forex, FX or forex trading, is a decentralized global market of all currencies that are traded around the world. This market is the largest and most liquid in the world, with a daily turnover of more than 5 billion dollars. 

The other stock markets in the world as a whole do not come close to this. But what does this mean? Take a closer look at forex trading and you will find interesting trading opportunities that are not available on other investments. 

FOREX TRANSACTION: EVERYTHING IS IN THE EXCHANGE RATE If you have ever traveled abroad, you have made a forex transaction. Travel to France and convert your pounds into euros. 

When you do this, the exchange rate between the two currencies - based on supply and demand - determines how many euros you will get for your pounds. And the exchange rate fluctuates continuously.   On Monday a pound could give him 1,19 Euros. On Tuesday 1,20 Euros. This little change may not seem like a big deal. But think about it on a larger scale. A large international company may have to pay foreign employees. Imagine what you could do to the bottom line if as in the example above, does changing one currency for another cost you more depending on when you do it? These few cents add up quickly. In both cases, you as a traveler or business owner may want to withhold your money until the exchange rate is more favorable. 

FOREX OPPORTUNITIES: WHAT IS YOUR OPINION? Just like in the stock market, you can change the currency based on what you think is worth. (Or where it is directed). The big difference with the Forex is that you can trade up or down with the same ease. If you think a currency will increase the value, you can buy it, if you think it will decrease the value you can sell it. With such a big market. 

You will find a buyer when you are selling and a seller when you are buying, it is much easier than in other markets. Perhaps you hear in the news that China is devaluing its currency to attract more foreign business to its country. If you think the trend will continue, you could make a currency operation, selling the Chinese currency against another currency, for example, the US dollar. The more the Chinese currency depreciated against the dollar, the greater its profits. If the Chinese currency increases in value while it has its open sale position, then its losses will increase and you will want to exit the trade.