What is Forex Trading? Forex Trading is trading currencies from different countries. Forex is acronym of Foreign Exchange. For Example, in the United States the currency circulation is called US Dollar. But not available in Indonesia such as Rupiah.
As we know, Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you expect to change in value and place a trade accordingly. For example, if you had purchased 6,000 Euros in March of 2011, it would have cost you around $7,200 USD. Throughout 2011 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
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