What is forex?
Forex is short for foreign exchange – the transaction of changing one currency into another currency. This process can be performed for a variety of reasons including commercial, tourism and to enable international trade.
Forex is traded on the forex market, which is open to buying and selling of currencies 24 hours a day, five days a week and is used by banks, businesses, investment firms, hedge funds and retail traders.
What is the forex market?
Forex market can be considered as the largest and most liquid financial market in the world. The forex market has an estimated average global daily financial trading activities worth more than US$6.5 trillion.
There is one critical feature of the forex market and that is no central marketplace or exchange in a central location, as all trading activities is done electronically via computer networks which is known as an over the counter (OTC) market.
what is FX:-
The foreign exchange market, A.K.A the forex market
The foreign exchange (also known as forex or FX) market can defined as the global marketplace where banks, institutions and investors trade and speculate on national currencies.
Forex trading:-
Forex trading is the process of speculating on currency prices for profit. Currencies are paired so that trading is possible. Currencies are traded in pairs, which results to exchanging one currency for another, a trader is speculating on whether one currency will gain value or lose value against the other.
The value of a currency pair is influenced by or depends on trade flows, economic, political and geopolitical events happening around the world. This activities affect the supply and demand of forex. This financial activities generate daily volatility that may offer a forex trader new opportunities. Online trading platforms provided by global brokers gives trader's access to buy and sell currencies from their phone, laptop, tablet or PC.
What is an online forex broker?
An online forex broker acts as an intermediary, enabling retail traders to access online trading platforms to speculate on currencies and their price movements.
Most online brokers will offer leverage to individual traders, which allows them to control a large forex position with a small deposit. It is important to remember that profits and losses are magnified when trading with leverage.
You can read and get more insight about forex trading.
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