In What Market Do Most U.S. Stock Market Transactions Occur Brief of Forex

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Brief of Forex

The term Forex trading is short for foreign exchange market which is the place where different currencies are exchanged in a continuous fashion by millions of people all over the world. Tourists to travel from one country to another must exchange currencies in order for the pay for the local products or services

A lot of Euros would be totally useless to Italian tourists wishing to visit Sphinx in Egypt because it’s not the locally accepted currency the tourists would have to exchange as Euros for the local currency Egyptian pound of the existing exchange rate on that day even without boarding a plane residents of one country exchange currencies with another country each time they purchase a foreign products.

For example, if you are living in the USA and want to buy a nice bottle of French wine you may pay for it in dollars but the wine has already been paid for in Euros. Somewhere along the line either the wine producer or the American importer had to have exchanged the equivalent value of our dollar into Euros.

Unlike the New York Stock Exchange or other stock markets, there was no central place foreign exchange rather currency trading is conducted electronically over-the-counter (OTC). Which means that all the transaction occur via computer network between traders around the globe? Rather than on one centralized exchange.

The Forex market is open 24 hours a day five days a week the need to exchange currencies is the primary reason why the Forex market is the largest most liquid financial market in the world. It outperforms other markets including the stock market with the average trading value of around two billion dollars per day.

So why would anyone trade Forex? ask three different people you will get more than three different answers making money is the most frequently cited reason this is a perfectly legitimate motivation we all live in a world where money even if it can’t buy everything can certainly still make life a lot more enjoyable.

There are some people who trade in the Forex market because they see it as a form of gambling and betting on the winning number he really can be a lot of fun especially if you win and there are other who trade Forex just with a personal satisfaction of making a trading system work for them and coming out with the results they aim for. We are always satisfied when we make the right choice.

The common factor for why people trade Forex is quite simply one way or another these people are getting whatever it is they want money enjoyment of self-satisfaction or perhaps they are trading for all three reason

Forex trading is a very simple concept

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