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What is Forex
What is Forex?
Forex is the abbreviation of: “foreign exchange market”. It is a global financial market, where traders every day deal with currencies. Before you become a forex trader, you have to know very well this particular market.
It is possible that you have already exchanged your currencies many times for your leisure travels, or because you are an owner of an international company, and you need to exchange currencies more than once a week.
In both cases you know that the exchange currency can have a disadvantage: the currency value of two currencies is not the same, so the result of your exchange could be a little or also a big loss. The forex market give you the possibility, of speculating on movements of stock prices and exchange rates.
To make profit, you have to be knowleadgeable about the macroeconomic situation, and the monetary condition of the currency’s countries. The speculation is not the only one trading activity of the forex market. There are traders that simply want to exchange currencies to pay costs for their corporate.
Thanks to this unique market you trade simply with your computer and 24 hours a day no stop. The financial centers are situated all over the world, in various time zones: London, New York, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. So if you want to trade in London but it is closed, you can trade in Singapore because there is opened.