FOREX = Foreign currency Exchange.
The foreign exchange market (forex, FX, or
currency market) is a global decentralized market for the trading of
currencies. This includes all aspects of buying, selling and exchanging
currencies at current or determined prices. In terms of volume of
trading, it is by far the largest market in the world.
Suppose you want to travel USA from JAPAN, So you need US dollar to spend there. What you will do ?
You must go to Bank or Local exchange house to Convert your YEN into dollar. The Bank or Local Exchange house will convert your YEN into Dollar with the current exchange value.
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| Current Exchange value |
How to earn with Forex market?
In the forex market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other tradintional market, so if you have any experience in trading, you will be able pick it up quickly. The object of forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold. For an Example You have buy today USDJPY with the exchange rate of 103.69 after some hour or day (as your target) you can see that the exchange value of USDJPY is now 103.95, That means you are in profit. If the price fall down from 103.69 that means you are in loss. The sell will be the opposite of Buy order.