The basics of FOREX Trading or Foreign Exchange Markets

What is FX or FOREX?
FX stands for Foreign Exchange. It is the simultaneous purchase of one currency in exchange for another. This particular market is worldwide, with buyers and sellers toping any other marketing in volume. These exchanges take place worldwide, in financial institutions everywhere. The FX marketing is open 24 hours days, and closes only from Friday afternoon PST until the markets reopen in Asian on Monday morning.

Buying and Selling Currencies
Currencies are always priced in pairs, and as a result all exchanges occur simultaneously when purchasing one currency for another. The purpose of buying one currency while selling another is to purchase a currency when it is weak, and sell the same currency when it has increased in value. The currency you purchase should increase in value to the currency you have sold. This ensures profit to the seller. Businesses also trade currencies in order to pay foreign debts and/or exchange foreign revenues into the local currency.

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