FOREX, stands for Foreign Exchange,it is the largest financial market in the world. With an estimated $ 4 trillion in currencies traded daily. Investing in foreign currencies is a relatively new way of investing. Trading foreign currencies, also known as Forex, it is the most rewarding investment market that exists. In a Forex trade, you buy one currency while simultaneously selling another – that is, you’re exchanging the sold currencies for the one you’re buying. The foreign exchange markets is an over-the-counter market krw exchange.
Forex market came to an existence at 1970. Foreign exchange markets is a platform where nation’s currencies is exchanged with another at mutually agreed rate.Forex trading allows an investor to participate in profitable fluctuations of world currencies, Forex is the most traded financial market in the world. 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, Forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
Purpose:
Foreign exchange markets is a place or platform where currencies are valued comparison to one another and exchanged. Trader buys one currencies and sells another in one transaction. Forex trading works by selecting pairs of currencies and then measuring profit or loss by the fluctuations of one currency’s market activity compared to the other.
Currency pairs:
Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there’s no centralized exchange for forex. All transactions happen via phone or electronic network.Forex traders generate profits or losses by speculating will there be a rise or fall in currencies comparison to another currency.
The “base” currency is the first currency in the pair. The “quote” currency, or “term” currency, is the second currency in the pair.
Value of a currency is a reflection of the condition of that country’s economy with respect to other major economies. The Forex market does not count on any one particular economy. Smart trading is the buying or selling of currencies in response to economic or political events, while speculative trading is based on a trader anticipating events.
Conclusion: