4 Money, Foreign exchange, Finance

  

What does Forex stand for?

Forex or FX stands for foreign exchange.

What does Forex refer to?

It refers to the trade of one currency into another country´s currency. For example: US Dollars into MXN (Mexican Pesos)

What is Forex trading?

Forex trading is an electronical market where people join to buy stock values. Trillion of US Dollars move through this market every day.

What does Forex trading market refer to?

It refers to the action of buying and selling stock market values.

How does the foreing exchange work?

People go into Forex exchange market and place their orders. For example:

I want to buy US Dollars. I must go to Forex Market and place my order on buying 10 US Dollars. I place my order and then I wait for the value of the US Dollar to rise and sell them for a higher price, so this way my investment in US Dollars would be successful.

What do people trade?

When people go into Forex Market, they trade international currencies.

How do people trade?

People trade by placing their orders into the market of currencies. There is a lot of different tools that can help you predict the values of the currencies.

What is a currency-pair?

The currency-pair is the currency value against another currency value. For example:

1 US Dollars = 19.872MXN

What makes currency- pairs move? 

This fluctuation is caused because of the power of a national currency. For example:

The MXN gained power during the last weekend, but the US Dollar remained the same. Then you could imply that the Mexican peso now would be worth more against the US Dollar.

Comments

  1. Hi Gerardo,I find each example you give interesting, it is good information so that the subject is explained correctly

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  2. Nice job, Gerardo! I liked the way you explain and complete with examples. Pretty nice information :)

    ReplyDelete

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