Wondering what is forex and how forex trading works? If so, you’re at the right place. Forex aka foreign exchange or currency trading is a decentralized international market where world’s different currencies are traded. You would be surprised to know that Forex Market’s average daily trading volume is around $5 trillion.
When you travel overseas, you make a forex transaction by converting your local currency into a foreign currency. For instance, if you’re traveling to USA from London, you’ll covert your pounds into US dollars. The rate of different currencies keeps changing every second based on their demand and supply.
How Does Forex Market Work?
The forex market is the world’s biggest financial market, trading around $1.5 trillion daily. Forex trading isn’t done at one specific location but is executed between different participants through phone networks and electronic communication networks in different markets throughout the world.
How can I start forex trading?
First of all, you will need to create an online trading account to start your forex trading venture. An online forex trading broker provides you with a platform to execute trading and create your online trading account. During your hunt to find a reliable online forex trading broker, you can come across many claiming to bring you the highest level of security and privacy. But in reality, most brokers don’t deliver exactly what they advertise.
In addition to allowing you to execute trading, a forex trading broker provides you with a host of features and services that go a long way toward helping you trade successfully. So, it’s very important that you pick the right trading broker to ensure you’re in safe hands.
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