Why should You Start Forex Trading...?

Sourabh Agarwal

Student

Forex trading is the buying and selling of currency. Currencies are traded through an agent or dealer and are traded in pairs. Euro, US dollar, British pound, Japanese Yen are some of the currencies traded in the Forex Market. You are not buying anything physical in Forex market. Currency trading works similar to the stock market. Think of buying a currency as buying a share of a particular country. When you purchase say Japanese Yen, you are in effect buying a share in the Japanese financial system, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In common, the exchange rate of a currency versus othercurrencies is a reflection of the condition of that country's financial system compared to the other countries financial system. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is measured an Over-the-Counter (OTC) or Interbank market, due to the fact that the entire market is run electronically within a network of banks continuously over a 24-hour period.