Forex is the world largest financial market. Can you imagine its daily turnover rate is US$1.9 trillion and that is a great amount of money? Who will not like to get in to Forex market?
It is about coeval exchange of two currencies. Currencies are exchanged in pairs like Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So it is all about exchanging.
Two main reasons are there to purchase or sale currencies and about 5% of daily turnover is by companies and governments who purchase and sale initials and services into their local currency.
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Currency exchange,
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japnese yen
The means of purchasing through trade is known as Currency. Today, generally currency refers to printed or minted money. Sometimes only paper bills are considered as a currency, while other times coins are also included in currency. The exchange of goods or services for cash is involved in currency.
Exchange rates means a country’s price for the trade of items.
Floating Currency
Floating currency merely means that a country’s exchange rate is not fixed or set in place by a main bank, but rather than that it fluctuates.
Fixed Currency
On the contrary fixed currency, is set and it is considered to be the opposite of floating currency. Fixed currency is also known as pegged currency and although it is often associated with the Euro and the US Dollar (USD) but it is not commonly used.
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Current exchange rates,
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