Whats is FOREX?
What is FOREX and How Does It Work?
Forex — also known as FX (Foreign Exchange) — is the global marketplace for exchanging one currency for another. In simple terms, it’s where banks, businesses, governments, investors, and traders come together to buy and sell world currencies.
For example, converting GBP (British Pound) to EUR (Euro) is a basic foreign exchange transaction. The Forex market is the largest and most liquid financial market in the world, with banks trading trillions of dollars’ worth of currency every single day.
Understanding Currency Pairs
Forex trading always happens in currency pairs. This means you’re simultaneously buying one currency while selling another. Examples include:
- GBP/USD – British Pound vs. U.S. Dollar
- EUR/CHF – Euro vs. Swiss Franc
How Traders Make Money in Forex
The goal is to speculate on whether one currency will strengthen or weaken against another. If your prediction is correct, you earn a profit from the difference in price movement.
Getting Started with Forex
Many brokers offer accounts designed for beginners, allowing you to start with small amounts — even as low as a few pounds. This way, you can learn how Forex works without risking a large investment.
📌 Note: Forex trading involves high risk. Always trade responsibly and never invest money you cannot afford to lose.
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