Forex is one the largest markets available to traders and people looking for a way to earn extra income on a regular basis. The currency exchange market is also called foreign exchange. It offers high liquidity as well as being a highly competitive and 24 hour market. At its inception, the main purpose of this market was to supply and demand currencies by banks and financial organizations. The system hasn’t changed much, but its accessibility and size have increased dramatically. Click for source!
As with cars, computer, stock and bond trading, and many other services and goods that are traded openly, currencies can also be traded. Demand and Supply affect the value of the currency. Value of currency can fall if the amount of supply is increased or decreased. Value of currency increases when there is an increase or decrease in demand for the currency. In the 1970s and 1980s, banks were the only way for retail investors to buy or sell forex.
As the volume of trading increased rapidly, there was a noticeable shift in currency trade. New and sophisticated trading platforms were made available to investors. For many, Forex trading is now a profitable business. Today, forex traders can choose from online trading software, forex book, or account-managed forex. You can use the many free online forex tools to help you succeed in your business.
What is forex? Currency codes in forex usually have three letter codes, such as USD for the US Dollar and GBP for the British Pound. You will trade in pairs. Two currencies are then paired to create a six-letter code. EUR/USD is the most commonly encountered currency pair. Other popular pairs include GBP/USD USD/CHF, and USD/JPY. A currency exchange is called an exchange rate. The second currency, also known as the term currency, is actually the currency that is being exchanged.