Forex Brief

The term forex trading is short for foreign exchange market, which is the place where millions of people around the world trade different currencies on an ongoing basis. Tourists to travel from one country to another must exchange currency in order to pay for local products or services.

A large amount of euros would be totally useless for Italian tourists wishing to visit Sphinx in Egypt because it is not the locally accepted currency that tourists would have to exchange as euros for the local currency Egyptian pound of the existing exchange rate on that day, even without boarding a plane Residents of one country exchange currency with another country every time they buy a foreign product.

For example, if you live in the US and want to buy a nice bottle of French wine, you can pay for it in dollars, but the wine has already been paid for in euros. At some point, the American wine producer or importer had to have changed the equivalent value of our dollar to euros.

Unlike the New York Stock Exchange or other stock markets, there was no central place of currency exchange, instead currency trading is done electronically over the counter (OTC). What does it mean that all transactions are carried out through a computer network between merchants around the world? Rather than on a centralized exchange.

The Forex market is open 24 hours a day, five days a week. The need to exchange currencies 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 value of around two billion dollars a day.

So why would someone trade Forex? ask three different people you will get more than three different answers making money is the most frequently cited reason 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 so much more enjoyable .

There are some people who trade the Forex market because they see it as a way to bet and bet on the winning number. It really can be a lot of fun, especially if you win and there are others who trade Forex just with a personal satisfaction of making a trading system work for them and getting the results they seek. We are always satisfied when we make the right decision.

The common factor why people trade Forex is simply that one way or another these people get whatever it is they want, money, enjoy self-satisfaction or maybe they are trading for all three reasons.

Forex trading is a very simple concept