What is it traded in Forex?

With money. How? Yes, Forex trading is the buying and selling of currency, coins, that is, money. Currencies are traded through a broker or dealer and are traded in pairs, for example euro and US dollar: (pair EUR/USD).

It is not actually purchased or sells nothing physically for what may be a little confused. Think of the purchase of foreign currency as the purchase of a participation in a country's economy, since the price of its currency is a direct reflection of what the market thinks about the present and future state of the economy of the country. In Forex, as mentioned above, reflects a certain currency pair quote price traded on currency pairs, according to what is said in this paragraph the economic conditions of a country against the country of another currency that makes up the pair.

Unlike that other markets financial, the market Forex is decentralized and does not have a location physical. It market Forex is considered a market interbank or OTC (over-the-counter, on the counter), due to the made of that this market works electronically, in a network between banks during the 24 hours of the day.

At the end of the Decade of the 90s of the 20TH century, only investors with a high financial power could access to Trade Forex with an initial on the $ 10 million capital. Forex was originally designed to be used by banks and large institutions. However, due to the expansion of the internet, today there are companies of Forex online Forex trade offered "to the retail" for retail investors.

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