The Foreign Exchange market, also called FOREX or FX, is the global currency trading market. 3 trillion, forex quotes explained heart is the biggest and most exciting financial market in the world.
Whether you sell EUR 100 to buy US dollars at the airport or a bank exchanges 100 million US dollars for Japanese yen with another bank, both of these are FOREX deals. Thanks to the internet you can trade on the FOREX market in the same way as traders from the largest banks and investment funds. All you need to get started is a computer with internet access and a trading account with a FOREX broker. On the FOREX market one currency is exchanged for another. An exchange rate can change very rapidly, sometimes several times a second, so there’s a lot of action going on 24 hours a day, 5 days a week. In general, the currency exchange rates reflect the health of countries’ economies.
Here’s an example of a FOREX trade. You decide to buy 1 000 euros against US dollars. USD exchange rate at which you can BUY at this moment is 1. USD exchange rate at which you can SELL euros for US dollars is 1. That’s how money is made or lost on the FOREX market. If you look at the FOREX quotes on your trading platform you will see that there are 2 prices for each currency pair.