What is Forex Market
Forex Market is a decentralized global market in which all world currencies traded against each other, and traders will benefit from the price changes of currencies.
The forex market (Forex) is also known as the currency exchange market, the FX, or the currency market.
Foreign exchange market
The Forex market is the largest market in the world, with an average daily trading value of over $ 5 trillion a day, with no centralized market for transactions to take place. Forex trading is done on an OTC basis, meaning that all trades transacted through a computer are traded by traders and other market players throughout the entire business.
Forex markets are open 24 hours a day, five days and a half per week without a centralized trading facility, and currencies are traded around the world and in almost all time zones.
The forex market is the most liquid market, and its higher liquidity means that prices will quickly change in response to news and short-term events, leading to the emergence of multiple trading opportunities.
To better understand this issue, here’s a closer look at the Forex history.
Forex market history
There are two major events in market market history that have had a profound effect on its development. These two historic historical events include the creation of the Gold Standard System and the Bretton Woods system.
A transaction in the currency exchange market simultaneously involves buying a currency and selling another currency. Because the value of a currency is related to another currency and is determined by the comparison of the two. Forex trading from the perspective of a trader is a guessing the value of a currency against another currency.
Each currency pair is an autonomous unit composed of the “base currency” (the first currency) and “counterpart currency (or quotation)” (the second currency) that can be bought or sold, indicating how much the opposite currency It is required to purchase a unit of base currency. Therefore, in the EUR / USD currency pair, the currency is the base currency and the dollar is the quoted currency. If you expect the euro to rise against the US dollar, then you can buy the EUR / USD currency pair. Buying a pair of currencies means buying a base currency (here is EUR) and selling an opposite currency (here is the USD). So, you are likely to buy the EUR / USD currency pair at a lower price, and then sell it at a high price and therefore benefit. If you expect the euro to drop against the dollar then you can sell the pair, which means you sell the euro and buy the dollar at the same time.
Although there is always a danger. If you expect the euro to rise against the dollar and therefore buy the euro against the dollar, but against the expectations, you will lose the price of the dollar. So, along with earning profit, you should also consider the risks.
As you can see, the understanding of the exchange market is not complex, and its entry is not a big deal. Within seconds you can become one of its activists and start earning money easily. How Forex trades, and especially how to use the online trading platform on our website have been trained. You can read our educational materials and ebooks that help you understand the basis of Forex trading, learn about its benefits, and learn how to effectively deal with and manage your risk.