The foreign exchange market, commonly known as Forex, is one of the largest financial markets in the world. It’s also one of the most difficult to understand.
In this article we’ll be taking a look at how it works and how you can profit from it.
So what exactly is Forex?
Well, Forex is an international market where currencies are traded. This means that people will buy and sell currencies all over the world. When someone wants to buy a currency they will have to pay with another currency. For example, if someone wanted to buy $100 in Australian dollars, they would have to pay for it using the U.S. dollar.
And when someone wants to sell a currency, they will have to pay with the currency they want to sell. So if someone wanted to sell $100 in U.S. dollars, they would have to use their U.S. dollars to buy the Australian dollars.
Now, there are a number of different ways that you can trade in the Forex market. One of the most popular is the “spot” trading method. In this method you simply place a bid or an offer and then wait until your bid or offer is matched by another trader. Once it has been matched, the two traders exchange the currencies at the current rate.
Now, you may have noticed that I didn’t mention any brokers in the above paragraph. This is because you don’t need to use a broker to trade in the Forex market!
You can trade in the Forex Market directly from your own computer. There are a number of Forex trading platforms available today. The best known of these is MetaTrader4. This is a free platform which allows you to trade in the Forex Market from your PC. You can download it and start trading in just a few minutes.
