What is Forex
Welcome back to Financial Empires, today you will discover what forex is and how it is possible to invest in this immense market full of opportunities on which everyone is beginning to open their eyes.
Definition
The word forex derives from the English Foreign exchange, with this word we refer to the currency market, the largest market in the world where billions of dollars, euros, pounds and so on are exchanged every day, it is a global banking network interconnected capable of satisfying the needs of all the economic operators involved.
In reality, forex is present in our life more than we think, just imagine that moment when we go on holiday abroad and exchange currency to be able to pay for goods and services in the local currency, at that moment we are already carrying out a ‘ forex operation.
What does it mean to trade forex?
As we have already said, forex is a currency market, and as such is subject to modest market fluctuations, these sudden price changes generate gaps on which it is possible to speculate. In fact, through the online trading platforms made available by brokers we can buy a currency when its value is lower than another and resell it when it is greater in this way we will have a profit.
At this point it is easy to ask what these market fluctuations depend on, the question is answered in an innumerable quantity of variables that all together contribute to making the supply and demand of a currency, think of the case of inflation, financial speculations , relevant economic events, even the market sentiment is capable of generating even very generous fluctuations.
Forex is a highly speculative market, it is active 5 days a week and 24 hours a day, which means that you can trade currency pairs at any time of the day even if the markets tend to be more hectic during the day.
About 90% of the market transaction takes place for the purpose of generating profits, which is why trading on forex represents a means of carving out a slice of this immense market, however we must be careful as it represents, as we said, a highly speculative market and the The risk of losing your money remains as high as any other form of investment.
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Financial Empires, The Editorial Staff
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