FOREX OVERVIEW

Millions of transactions take place every day on a currency market called Forex. The word "forex" comes directly from the beginning of two words: "foreign" and "exchange". foreign exchange market today. Unlike other trading systems such as the stock market, Forex does not involve the trading of physical or representative goods. Instead, Forex operates by buying, selling, and trading between the currencies of different economies around the world. Since the forex market is truly a global trading system, business is conducted 24 hours a day, five days a week. Also, Forex is not tied to any regulatory agency, which means that Forex is the only truly free trading system available today. forex trading platforms in India. By keeping exchange rates out of the reach of a group, it is much more difficult to manipulate or corner the currency market. With all the advantages associated with the forex system and global participation, the forex market is the largest market in the world. The Forex market is trading between $ 1 trillion and $ 1.5 trillion every day.

Forex works primarily



Forex works primarily on the concept of "floating" currencies. This can best be explained by coins that are not backed by certain materials like gold or silver. Before 1971, a market like a Forex did not work due to the Bretton Woods International Treaty. about foreign exchange market. This agreement stipulated that all participating economies would strive to keep the value of their currencies close to the value of the US dollar, which in turn was held to the value of gold. In 1971, the Bretton Woods agreement was abandoned. The United States ran a large deficit during the Vietnam conflict and began printing more paper money than it could afford in gold, resulting in relatively high inflation. the best broker in India for forex. By 1976, all the major currencies of the world had abandoned the system established under the Bretton Woods Agreement and had been transformed into a free-floating monetary system. This free-floating system meant that each country's currency could have very different values that fluctuated depending on the country's economy at the time.

 

Since each currency fluctuates independently, it is possible to benefit from changes in the value of the currency. For example, 1 euro was worth around $ 0.86. Soon after, 1 euro was worth around $ 1.08. Those who bought euros for 86 cents and sold euros for $ 1.08 could make 22 cents of profit, which could translate into hundreds of millions of profits for those deeply rooted in the euro. Everything about the currency market depends on the exchange rate of the different currencies. Unfortunately, very few people realize that the exchange rates they see on the news and read in the newspapers on a daily basis could pay off for them, even if they only made a small investment.

The euro and the US dollar are probably the two best-known currencies used in the Forex market and therefore are two of the most traded in the Forex market. Besides the two "kings of the coin", there are a few other currencies that have a pretty good reputation in the forex market. The Australian dollar, Japanese yen, Canadian dollar, and New Zealand dollar are the main currencies used by established currency traders. However, it is important to note that most currency exchange services do not display the full name of a written currency. Each currency has its own symbol, just as companies that participate in the stock market have their own symbol based on their company name. Some of the most important currency symbols to know are:


USD - US dollars

EUR - The euro

CAD - The Canadian dollar

AUD - The Australian dollar

JPY - The Japanese yen

NZD - The New Zealand Dollar

Although the icons can be confusing at first, you will get used to them after a while. Remember that the symbol of any currency is logically formed from the name of the currency, usually in the form of an acronym. With a little practice, you can find most currency codes without looking for them.

Contact Us: