Four minutes to teach you what is forex trading!
If you have never traveled abroad, you may need to exchange foreign currency. Doing so is equivalent to joining a foreign exchange transaction. FOREX is the abbreviation of “Foreign Exchange”. Of course, foreign exchange transactions are more than this. For example, companies purchase items from abroad. In order to purchase, they must first hold their national currency. Just like we go on vacation, the difference is that they will be large. Redemption.
Four minutes to teach you what is forex trading!
When these companies exchanged large amounts of money, they actually affected prices.
Because the demand for money increases, the demand increases, and the price rises. As the demand for exchange around the world continues to rise, the exchange rate continues to fluctuate. The operating rules are as follows. The price when the currency is exchanged is fixed. The exchange rate is the same as other markets.
If many citizens or companies want to exchange the euro for the dollar, the price of the dollar against the euro will rise and the exchange rate will change accordingly.
We use examples from life to explain how it actually works.
Let ’s say you live in Europe and went to the United States for a vacation. Let ’s say you converted 500 Euros into U.S. dollars at an exchange rate of 1.4 dollars, and you got 700 dollars, but you did n’t spend any money, and you still have 700 dollars left when you return. With the US dollar down to $ 1.3, you can actually get € 538.5 instead of € 500.
Four minutes to teach you what is forex trading!
You made 38.5 Euros because you changed the US dollar and the exchange rate fluctuated.
This is basically our trading process in the foreign exchange market. We buy a certain amount of currency, hold it when the price fluctuates, and then exchange it back to make a difference.
In the next course, we will teach you how to seize the right time to buy and sell. You can travel around as you want and exchange the little money you saved. This is an unrealistic foreign exchange trading solution. Fortunately, fortunately, There is an easier way to trade currencies through an online exchange called a broker, which means you can exchange currencies online all day, taking advantage of the constant exchange rate, just like the holiday example, you can buy different Currency, using exchange rate changes to make money, this is the foreign exchange market transactions.
Forex trading through brokers has many benefits. You can trade foreign exchange at home or anywhere. As long as there is an internet, the foreign exchange market is never closed. It is open 24 hours a day, five days a week, in line with daily habits.
The start-up capital for speculation in foreign exchange is small, only 150 US dollars can start trading, and can continue to increase positions in the future.
Four minutes to teach you what is forex trading!
Of course, you need to learn before you get started. Forex Jun can help you learn how to trade in a personal way, so that you can find the right direction in the foreign exchange market.
