Forex is widely referred to as the foreign exchange market. It’s the greatest financial market worldwide. It is based on a everyday average turnover that worth US $1.9 trillion. Forex market is supposed for buying currency and selling it simultaneously. Mostly the currencies are increasingly being traded in pairs. In order to understand the pair trading some examples can be used like Japanese Yen / US Dollar (JYP/USD) or US Dollar / Euro (USD/EUR). Hence Forex is called trading. You can find basically two reasons for trading or buying and selling for currencies. It draws around 5% of daily turnover from the US government and companies like people who buy or sell services and products to foreign countries. In this procedure it’s possible to convert the profit by foreign currencies into domestic currency.
Another 95% comes from trading for profit. It is called speculation. The investors usually trade upon information that they think to be true, superior and relevant. As a matter of fact, it’s not relevant, superior, true and completely discounted by Forex market. The foreign exchange market or Forex market can be viewed as being an interbank or Over the Counter market which is called OTC market.
