Understanding Forex - #1 - What is Forex?
This is a series of articles on the foreign exchange market. You will learn here what Forex is, how it works and how profitable it can be. The entire series contains the following articles. . . What is Forex? Technical analysis Fundamental analysis Money management Compound interest What is Forex? The word Forex stands for The Forex Exchange Market. This is the most liquid market in the world where you can trade or exchange one currency for another. For example, if you think the euro will appreciate in value and you have US dollars, you can exchange dollars for euros. If you are right and the euro appreciates in relation to dollars, then you can close the position by making a profit. This is the idea behind the Spot Forex Market. This is an interbank system, which means it is not centralized. There is no central exchange where currencies are traded. It is a global market. You can trade Forex online 24 hours a day, 6 days a week. This market emerged in the early 1970s. The reason was t...