Forex "foreign exchang

 Forex "foreign exchang".

Forex is a commonly used abbreviation for "foreign exchang", and it is typically used to describe trading in foreign exchang market by investors and speculators.

We can say that forex is the market where all the world's currencies are trading.

Features of "Forex"

Forex is the most liqiud market in the world so you can do all your transactions without any limits.

Also you can trade 24 hours a day, five days a week, you have access to margin trading, and you gain exposure to international market.

You must know a very important features of forex that the average of trading volume exceeding 5.3$ trillions and there is no central exchange as it trades over the counter.

Simply I will give u an example.

Imagine situation where the U.S dollar is expected to weaken in value relatively to the euro .

What will you do as forex traders?

in this situation you will sell dollars and buy euros logically.

Obviously if the euros strengthen .the purchasing power to buy dollars has now increased. The traders can now buy money back in dollars that they had been sold and making profit.

That is simply stock traders.

What the meaning of stock traders?

Stock traders will buy a stock if they think that it will increase in price. So they can earn money by using their well thought out predications.

Forex transaction.

All of us probably did forex. When we traveled overseas we exchang our currency with the currency so the country we traveled to simply that is forex transaction. Let you traveled to London and you are from USA, and you traveled at Monday.

Let your dollars get you 10 euros .at Tuesday get you 9 euros this tiny exchang may not seem to be a big deal but think in a large scale .

A large international country need to buy something coasted  1million euro in London and 4 dollars equal to 1 euro on Monday for example do you think if on Tuesday 1 euro equal to 5 dollars what will happen to the cost of this deal . that's simply  Forex transaction.