Foreign Exchange - Forex
The foreign exchange (also known as forex or FX) market is one of the most exciting, fast-paced markets around. In this tutorial, we will understand what forex market is and how forex trading is done. We also see what are the key terms associated with foriegn exchange.
First, let's see what we mean by the term foreign exchange. Foreign exchange means the exchange of foreign currencies and foreign exchange market is the "place" where currencies are traded.
Foreign exchange market exists because there is always a need to exchange one currency for another. There is no central marketplace for foreign exchange. The emergence of the internet has made it possible for average investors to buy and sell currencies easily with the click of a mouse through online brokerage accounts. Hence, forex market is also known an Over-the-Counter (OTC) market or an Interbank market.
|