0
The Forex market can be thought of as a large exchange booth where currencies are bought and sold against each other. If you know, for example, that the dollar is going to increase in value, you buy dollars right now, wait for the currency to rise in value and then sell your dollars for another currency later at a higher price. This is essentially how things work on the Forex market. The only difference, of course, is that on the Forex market the volumes are much larger.
The fact that the price of currencies is in constant fluctuation is what makes earning money on the Forex market possible at all times. Since currencies are priced relative to each other, a loss of value in one currency necessarily entails a gain in another currency. This brings us to the idea of a currency pair, one most important concepts in trading currencies.
A currency pair simply represents the price of one currency in terms of another. For example, when it is said that "EURUSD is 1.2505" it means that 1 euro costs 1.2505 dollars.
Ref: alpari.com/en/beginner/about_forex/
Wiki User
∙ 8y ago
Add your answer:
Earn +20 pts
What is forex exchange market?
Forex exchange market is a currency market and It is market for the trading of currencies.
How to name Forex market in other words?
currency exchange Fx market Foreign exchange market
What is Currency exchange market?
Its a market that is used to exchange or trade currencies of different countries.
What is difference between money market and foreign exchange market?
Foreign exchange market is a market where foreign exchange currency problems are resolved in international trade. Where as Money market is for the lending and borrowing of short term loans.
How do you match a product with the type of market in which it is sold?
oil = commodity dollars = currency exchange market treasuries = bond market Corn and wheat-Commodity market Pesos and yen-Currency exchange market Munis and Treasuries-Bond market
What does the resource market represent?
The resource market represent a platform for exchange. People are able to exchange their products or services for money at the market.
What are functions of future exchange market?
what are the functions of future exchange?
What is the differences between stock market and currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is the difference between the stock market and the currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is the market for foreign currency exchange?
Question: What is the foreign currency exchange market?Ans:The main currency exchange market is Forex/FX. The market covers all the accepts of selling and buying currencies on the existing values. In terms of volume it is the largest currency market of the world.
What are the differences between foreign exchange market and equity market?
Foreign exchange (forex) is the global market of currency (money) , equity market (stock market) is the global market of shares (small pieces of large companies)
What are the foreign exchange market instruments?
what are the FOREX market instrument?
