Understanding Forex – #1 – What is Forex?


This is a series of articles about The Foreign Exchange Market. You will learn here what Forex is , how it works and how profitable it can be. The whole series contain the following articles . . .


1. What is Forex


2. Technical analysis


3. Fundamental analysis


4. Money management


5. Compound interest


What is Forex?


The word Forex is an acronym for The Forex Exchange Market. This is the most liquid market on the world where you can trade or exchange one currency for another. For example, if you think that the Euro will appreciate in value and you have US dollars, you can trade the dollars for the Euros. If you are right and the Euro appreciates in value in relationship with the 문화상품권현금화 dollars, then you can close the position realizing a profit.


That’s the basic idea behind the Spot Forex Market. This is an interbank system which means that 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 per day, 6 days per week.


This market emerged at the beginning of the 70’s decade. The reason was that currencies where not backed up...

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