What is Forex?

What is Forex?

What is Forex? We'll try to explain it in simple words.

You may have already participated in Forex trading if you traveled abroad and bought local currency.

FOREX is simply an abbreviation for “foreign exchange”. But Forex trading itself is more than just currency exchange.

Suppose you changed 600 euros into dollars at the rate of 1.20 USD for 1 EUR. You got 720 dollars but didn't spend them for some reason. A bit later, the euro dropped to 1.15 USD, and you sold your dollars back, thus getting 626 euros. So you became 26 euros wealthier by making two exchange transactions and holding your money.

This is Forex trading in a nutshell. Traders buy amounts of certain currencies or commodities such as gold or oil and hold on to them while observing exchange rates and waiting for a good opportunity to change some currencies back.

Now the vast majority of traders work online and use the services of online exchange offices called brokers to take full advantage of constantly moving exchange rates.

Trading with an online broker is very beneficial. You are not tied to a specific location and can trade anywhere — at home, on vacation, even in traffic jams. The main thing is that you have a stable Internet connection.

Another great feature is that the Forex market does not sleep. It is open 24 hours a day 5 days a week, so you can customize your trading schedule to suit your daily routine.

Forex trading is a big and exciting world, and we can help you take the first steps.

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