What is forex ? What does "FOREX" mean?

in money •  7 years ago 

What is forex ?
Have you ever traveled abroad? So you have probably already taken your first step in the Forex market. Indeed, when at the airport or at the station you make a change of currency (ie a change of currency against another), then it takes place on the Forex market.

What does "FOREX" mean?
FOREX is the contraction of "FOREIGN EXCHANGE" and is the term universally used to describe the foreign exchange market on which currencies are traded against each other, at constantly changing rates (for example the euro against the dollar).

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Indeed, exchange rates, or quotations, vary constantly depending on supply and demand and the economic climate. This global market is the world's second largest market behind interest rates. He sees daily passing almost 3000 billion euros, which is much more important than the stock market (the stock market).

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Criteria of the Forex Market
This market is reputed to be the most liquid market in the world. Its intense volatility, and its proximity to daily life (since it is the author of exchange rates between currencies) makes it a particularly endearing and exciting market.

Recently, it is possible for any individual to trade currencies online, by taking part in this market on specialized trading platforms. Note that before, only banks and large financial institutions could afford because the minimum investment was in the order of $ 10 million!

Now trading platforms, called forex brokers, can offer accounts accessible to small investors and speculators like us. In addition, the volatility and the proposed leverage effects make it a particularly lucrative market for any skilled or experienced person.

FOREX allows you to exchange all the currencies in the world. Some are more popular, and the most traded are in the order of the dollar, the euro, the yen and the pound sterling.

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  ·  3 years ago (edited)

Oh, I didn't even understand that most people have already worked with forex while traveling. I think it makes people trust forex trading more because literally everyone can exchange foreign currency with the possibility to profit. That's why I'm a trader myself, and this page with forex brokers reviews helped me at the beginning of my trading path.