Forex market or foreign exchange market is a form of market where people make transaction and trade currencies from all around the world. If we see it from its volume, we can say that this is the biggest form of market in the whole world that work nonstop, 24 hour a day for five and a half days a week. The basic idea of this market is where people or one party purchases a quantity of a currency by paying it in another currency. So, basically people deal with currency and only currency in a pair. This foreign exchange is the one that affect the value of one country’s currency to another.
Why do this type of market is available in the first place? Forex market allows international trade and investment to form by its ability to convert one currency to another. It allows business people from different country to trade to each other no matter the based location of the business itself. The advantage of this market goes deeper than that. It also makes the exchange rate less volatile and somehow gives the sense of balance between one currencies to another.
People can trade in this market no matter where they are as long as they have good internet connection and a computer. The trader who make the right decision by selling or buying the pair of currency in the right time can gain such a huge profit and this is basically the thing that makes lots of people want to be a trader. Basically everyone can be a trader although in most cases the one who play directly in the market is financial institution from various countries all around the world. That is the basic information about forex market that surely every trader must have known about and this is only the scratch of it, where there are so much more about forex that every trader must learn.
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