What is Forex?

Hello respected friends, I hope everyone will be fine, I want to start the forex trading business or you can say I want to join this system. So please I am not aware about this system please can somebody tell me what is forex, and how can i start it?

There is this thing called Google

You should try it out

Forex trading is the act of simultaneously buying one currency while selling another, primarily for the purpose of speculation.

Some people doing Forex trading as business but most of people doing as hobby. What about you?

You better click the ‘School tab’ just above your post.
Regards

Forex is a trading system. Which is used to describe currency trading or trading in the foreign exchange market.

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When it works, Forex (foreign exchange) trading engages in arbitrage dependent on the changing values of various currencies. Some of the safest investing strategies take benefits of arbitrage, the process of using known gaps in price and value between regions in order to make a profit on the difference.

I am all for the use of arbitrage. It makes very good sense.

Forex trading is a currency business. we can be called online trading business where we can make profit in an simplest way.

Forex trading gives us an chance to trade without much complications.

Forex trading is the means through which one currency is changed into another. When trading forex , you are always trading a currency pair – selling one currency while simultaneously buying another.

These threads crop up from time to time and are often fun.

For example, what if I said there are traders out there who think that when they open an account in USD and they buy EUR/CHF, some of their US Dollars are converted by the broker into Swiss Francs which are then sold in order to buy some Euros. And when they close the position, the Euros are sold and the buyers pay for them in US Dollars and that’s what ends up in their account.

In the simplest terms, forex trading is the process of buying and selling currency pairs. To start with, you can join the school of pipsology. The course will help you understand the basics of forex and you will get to know what strategies can work for you and which ones you must avoid.

Forex is also known as foreign exchange or FX trading. It’s the exchange of one currency for another.

…which is what the banks are doing but which is exactly not what we are not doing.

“Forex” is an abbreviation for foreign exchange and it can be defined as the exchange or trading of currencies. Market participants can buy and sell the currency of almost any country against another.

All foreign exchange transactions involve two currencies, for example the EUR/USD (Euro/Dollars) pair. Its exchange rate is in continuous fluctuation, and that fluctuation is at the very heart of currency trading.

If you think the Euro is going to rise versus the U.S. Dollar, then you would buy EUR/USD. Conversely, if you think its value will depreciate, then you would sell EUR/USD. This sums up the basic mechanism of currency trading.

A Forex transaction involves everything from the simple currency transactions that tourists often make when travelling, to the multi-billion dollar transactions executed by large corporations, financial institutions and governments.

Features and advantages of the Forex Market:

  • High Liquidity : the Forex market is the largest financial market in the world, with over $5.3 trillion traded daily.
  • Omnipresence : There is no centralized trading exchange, and all trading is conducted through electronic communication networks in various markets around the world.
  • Round the clock trading : Forex is a market that never sleeps, trading for 24 hours, 5 days a week.
  • Flexibility : unlike stocks which you generally have to buy, as a forex trader you can profit in rising as well as in falling markets.
  • Low barrier entry : thresholds for minimum capital requirements are very low, since favorable leverage is offered by most brokers.

Forex, or FOReign EXchange, is the exchange of one country’s currency for another country’s currency.

Example: Sam lives in the US and is traveling to Europe. Sam has USD and needs to buy EUR. The current exchange rate is 1.3000 USD for 1 EUR. Sam buys 1000 EUR by selling 1300 USD (1000 x 1.3000). This is a foreign currency exchange or Forex.

huh? Forex is basically short form of Foreign Exchange, simply an exchange of currency of one country with another.
Why don’t you check out more at the babypips course?

Forex is a short term given to forex exchange. In forex trading, a trader sells a currency pair and the other trader buys it where both the seller and buyer aim at making profits. You can start with the school of pipsology to get the basic information about forex trading.