The meaning of Forex

 The meaning of Forex

Forex is a term that refers to the change in foreign ex , which is the currency trading market of a country by another. When you are in another country, trade in the currency of their country in the currency of the country you are visiting is that the forex market is all about. To exchange their U.S. dollars for another , for example - the Japanese yen , you must set the exchange rate between the two countries .

Forex story begins long after the creation of money as a means to purchase items . Often , foreign trade of a country still relied on barter, as the value of a currency is not always remember another country. The paper money was printed in notes to the value of metals such as gold, in the Middle Ages. The Templars were said to have used this method when the transfer of funds , which form the basis of our banking system today . Until the First World War, most currencies by central banks were supported by physical possession of gold. However, it has become acceptable to print money without that support , sometimes with disastrous results. The Bretton Woods agreement of 1944 was created to help stabilize local currencies and encourage the equitable sharing among countries .

The meaning of Forex

Comparing one currency to another is the heart of the currency. Currency pairs - literally a couple of coins - are compared with each other . For example , the U.S. dollar and the euro ... A coin is of particular value when the currency is traded against another . The value of the currency of each country is largely based on the value of traders regularly with him, or have similar economies. How is it is a fairly complex process , and will be discussed in another article .
Currencies are traded without a central , which is different from how they are traded stocks and futures . The foreign exchange market operates is Europe, Asia and the United States in different teams , so that currencies are traded continuously 24 hours a day . Currency trading between different banks , banks and forex brokers and dealers and individuals is performed thousands of times each day. No entity has the ability to influence the market - at least for long. This is really a democratic form of trading ...