Forex Trading Explained

Forex, or Foreign Exchange Market, Trading is the investment strategy of trading currencies from different countries against each other. There are several assets a Forex Trader can become involved in, including currency, commodities like oil and gold, and stock indices, and each one is traded as an exchange at an agreed price to create a profit.

This lucrative exchange process is valued at approximate a $4 trillion turnover each day, with investors pitting currencies, such as the Euro and US Dollar against each other to increase their profits. For example, if you choose to exchange the Euro for the US Dollar, you simply must choose whether the Euro will depreciate, or fall, in value versus the American Dollar, which is called Going Short or if it will appreciate, or gain, which is called Going Long.

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