[URL deleted] Foreign exchange or forex is the act of trading one currency for another. Banks and other financial institutions trade foreign exchange in the foreign exchange market- or fx market- to earn income. Traders buy and sell different currencies to make money.
Foreign exchange is a worldwide market and it's increasing yearly due to globalization. Here are some of the factors that contribute to this expansion: Foreign exchange is the act of trading one currency for another. For example, if China wants to buy gold, they would go to the gold market and buy gold. In this way, countries trade goods and services with each other.
Governments also use foreign exchange to purchase imports from other countries and export goods to other countries. Essentially, foreign exchange is a huge market with a lot of potential for both buyers and sellers. The foreign exchange market updates bid and ask prices for each currency every few seconds.
Buyers and sellers post bids and asks for different currencies on the market. If a buyer or seller finds a price they like, they can initiate a transaction by acting on that information.
Foreign exchange is a worldwide market and it's increasing yearly due to globalization. Here are some of the factors that contribute to this expansion: Foreign exchange is the act of trading one currency for another. For example, if China wants to buy gold, they would go to the gold market and buy gold. In this way, countries trade goods and services with each other.
Governments also use foreign exchange to purchase imports from other countries and export goods to other countries. Essentially, foreign exchange is a huge market with a lot of potential for both buyers and sellers. The foreign exchange market updates bid and ask prices for each currency every few seconds.
Buyers and sellers post bids and asks for different currencies on the market. If a buyer or seller finds a price they like, they can initiate a transaction by acting on that information.
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