What is Forex

What is Forex?

To introduce this particular worldwide market in a very simple way, w questions can be very useful:

What? Forex is a “foreign exchange market”. “Foreign” because it is a worldwide market,  and “exchange” because the currency exchange is the protagonist of this market. You can need to exchange your currency for touristic or business reasons. If you fly to a foreign country, in some cases you have to exchange your money, because this foreign country doesn’t accept your currency.

For the same reason an international company, who buys products from another country can’t pay them with its currency. The seller needs a payment in its currency,  or in many cases in U.S dollars.

A payment in U.S. dollars could be requested also from a company, who is not situated in United States and the company that must pay, could also not be situated in USA.

The following operations are the two most important aims that a forex trader can have: first one, to exchange currencies,  to import products or make all financial activities for its own company. Second one,  to be informed about the oscillation of prices and currencies,  affected from macroeconomic condition and monetary situation. This analysis could be useful to take advantage on movements of stock prices and exchange rates.

Why? The reason is only one: profit.

Where? Where you want. You have not to go to the financial center, because you can use your pc and an Internet connection

When?When you want. You can take advantage on the big offer of different financial centers situated all over the world: Tokyo, London, New York, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. Obviously these centers close at the end of the day, but when a financial center is closed another will open or is already opened.

Forex Blog: Familiarizeforex