What is Forex
Forex, short for ‘foreign exchange’, is an international currency market where participants conduct transactions with currencies of different countries. This market is characterised by high liquidity and a huge volume of transactions, which makes it one of the most attractive for traders. In Forex, investors can buy, sell and speculate on exchange rates in an effort to profit from changes in exchange rates. This dynamic market operates 24 hours a day, five days a week, providing traders with a flexible schedule and the ability to react to real-time news and world economic events.
Do you want to put together an impactful portfolio?
Sign up and consult with experts, we can help you increase your income.
How does forex trading work?
Forex trading takes place through special trading platforms provided by brokers. Investors can make transactions by buying or selling currency pairs based on their forecasts of changes in exchange rates. The Forex market uses contracts for difference (CFDs), which allow traders to earn on both the rise and fall of currency prices. Thus, forex trading is a speculative activity where traders seek to profit from changes in exchange rates based on analyses of the market and economic factors.
Which factors affect currency quotes?
In the forex market, currency quotes are affected by a variety of economic factors. Important events such as changes in central bank interest rates, economic indicators of countries (such as GDP, inflation, unemployment), political events, and the geopolitical environment can all affect the relative value of currencies. Traders actively follow the news and analyse the data to understand what factors may affect currency rates and make appropriate trading decisions.
