Forex Markets - Trading Currencies Worldwide
Forex Markets - Trading Currencies Worldwide The Forex market, also known as the foreign exchange market, is the global marketplace where currencies are traded. Unlike stock markets, where shares of companies are bought and sold, the Forex market deals exclusively with currency exchange between different nations. This worldwide market is essential for international trade and investment, allowing businesses, governments, and individuals to exchange currencies for various purposes. How Forex Trading Works In Forex trading, you are essentially buying one currency and selling another. For example, if you are exchanging USD (U.S. dollars) for EUR (Euros), you are simultaneously selling USD and buying EUR. Each currency pair has a three-letter symbol representing the country and the currency being traded. Some common examples include: ...