Publisher's Synopsis
FOREX TRADING
The word 'forex' is short for 'foreign exchange.' It involves the process of converting one currency into another currency for reasons including tourism, trading, and business.
Although a person can participate in foreign exchange by traveling to a different country and exchanging his or her currency for the foreign country's currency, the foreign exchange market is more significant than that. The foreign exchange market is a global forum for exchanging substantial national currencies against each other. Due to the international spread of finance and trade, the forex markets experience high demands for foreign currencies, which makes the market the most significant money market in the world.
When multinational companies intend to buy goods from other countries, companies need to find the local currency first. That exchange will involve vast amounts of currency exchange. As a result, the local currency value will move up as the demand for that currency increases with that exchanging going on around the world, the exchange rate always changes.
When global traders exchange currencies, currencies have a specific exchange rate, the price of currency changes according to the law of supply and demand; the higher the demand, the higher the supply and the higher the exchange rate.
The foreign trading market has no centralized marketplace for foreign exchange. Foreign exchange bureaus operate electronically through computer networks between traders all over the world.
Therefore, foreign trading goes on for 24 hours a day, six days a week in leading financial centers of major capital cities around the world. Investment and commercial banks carry out most of the Forex Trading in the international marketplaces in place of clients and investors.
