Forex is an abbreviation of the word foreign exchange. This means foreign currency exchange. Activities of currency exchange salt was generally done to make trade between countries, whether they export or import.

Activity that looking for profit from difference price between a sale and purchase of foreign currencies that are traded is called by traders. The perpetrators trader is taking advantage of the difference between selling price and buying price. Their activities to make money is usually done at a place called the trading house or brokers.

Forex is an investment product that is liquid and also internasional. Based on surveys conducted by several agencies, forex trade turnover reached more than 1, 4 trillion dollars a day. The transaction was worth well above futures trading products, including stocks and other commodities. The existence of currency turnover is causing huge forex trading can not be done by a single large investor. Depends entirely on the price mechanism of the market.

This is done for profit in forex trading is similar to other conventional trade. In regular trading, the advantage is also obtained from the difference that arises from the initial price. As a simple example, we buy gold 1gr with price $ 20, then we sell gold at a price of $ 21 on world gold prices are rising. Excess of $ 1 is what we refer to as a trade profit.

One of the basic things that differentiates the conventional trade is that we traded in the forex is a foreign currency. Even in a simple way we've also done forex activities, although we have never realized it, namely in the activities of money changers. Suppose we exchange the currency of our country, then we exchange the currency in dollars. Or perhaps we do the opposite, namely by exchanging the dollar in the currency of our own country. Activities of this money changer rarely do we use to take advantage. But such activity is a simple description of a forex trading activities.

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