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What is Forex?
Forex, also known as foreign exchange, FX or currency trading, is a
decentralized global market where all the world's currencies trade. The forex
market is the largest, most liquid market in the world with an average daily
trading volume exceeding $5 trillion. All the world's combined stock markets
don't even come close to this. But what does that mean to you? Take a closer
look at forex trading and you may find some exciting trading opportunities
unavailable with other investments.
FOREX TRANSACTION: IT'S ALL IN THE EXCHANGE
If you've ever traveled overseas, you've made a forex transaction. Take a trip
to France and you convert your pounds into euros. When you do this, the forex
exchange rate between the two currencies—based on supply and demand—determines
how many euros you get for your pounds. And the exchange rate fluctuates
continuously.
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