FOREX is a term that has been heard about a lot recently, and not without reason. What is known as the FOREX market is the largest financial industry with billions of dollars’ worth of value traded on a daily basis? It’s no wonder that more people are getting interested in the topic; and, because of that, we are presenting you with this small guide on what it is and how it works.
FOREX is short for “Foreign Exchange” and, as the name implies, is the exchange of foreign coins.
It is well-known that there are value and price differences between the currencies of each country due to political and economical stability or possibilities. Said factors account for the perceived value of a country’s coin.
Let’s say, for example, that Europe is passing through economic bliss, a period of pure financial growth which has placed the economic freedom above the world average. That means that the Euro will be seen as a stronger currency and, as such, its demand will be much higher than it was before.
The FOREX market sets its foundations on that principle. Due to some currencies being worth more than others due to the possibilities presented by them, the possibility of purchasing them with less (or more) valuable coins is born.
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