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What is trading forex?
Why you should traded?
The quick answer is MONEY.
In forex, you’re not buying anything physical. Think of buying a
currency as buying a share in a particular country, its kind of buying
stocks of a company. The price movement of the currency is a direct
reflection of what the market thinks about the current and future health
of a certain country’s economy.
A simple way to understand, say,
if you buy the Pound Sterling then you are basically buying a “share”
in the U.K economy. You are asuming that the U.K economy is doing
well, and will even get better in the future. Once you sell those
“shares” back to the market, hopefully, you will end up with a profit.
In other words, the exchange rate of a currency versus other currencies
could be a reflection of the condition of that country’s economy,
compared to other countries’ economies.
Forex trading is the
contingously market where people buying of one currency and selling
another. They are eventually traded through a broker or dealer. Curency
are traded in pairs; for example the Pound Sterling and the U.S. dollar
(GBP/USD) or the Pound Sterling and the Japanese yen (GBP/JPY) etc.
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