What is Forex?
Forex is Foreign currency exchange market or spot Forex or FX. Currency market is the market of selling or buying foreign currency. You can sell the currency of one country there and can buy the currency of another. Like share market where shares are exchanged, here currencies are exchanged. Here exchanging is occurring by giving currency of one country and getting currency of another country in return. The currency of America is Dollar where pound is the currency of UK or Britain. You can sell pound and get dollar or sell dollar and get pound in Forex market. Beyond dollar and pound, there are many currencies of many countries that you can sell or buy.
Suppose, you are travelling to France. After going there, you felt the necessity of buying utilities, but you have dollar to pay. While paying dollar will not accepted by seller, as he will demand EURO. That’s why you need to collect EURO as the alter of dollar by using money exchange. Here you bought EURO and sold dollar, similar to Forex market.
What is Forex trading?
Among us who use internet regularly have heard the name of Forex trading often. What is this Forex trading? Let us know about trading. Forex trading is Foreign exchange trade or foreign currency exchange. In easy word, the trading occurs by selling and buying of currencies of different countries.
Lets think, you have 70 BDT with those you bought 1 dollar.After some time you get to know that value of dollar has increased against value of BDT from 70 BDT to 75 BDT. Now you have sold that dollar against 75 BDT by gaining profit of 5 BDT. Again think that value of dollar decreased against BDT to 70 BDT. Now u again bought 1 dollar for gaining profit by selling this dollar while the value of dollar will increase. Thus by exchanging currencies you obtained profit Forex trading seems exchanging currencies. But it is not so difficult and time consuming as exchanging currencies. In-fact trading is easier.
Here you don’t need to invest a large amount of money and don’t wait for a long time for varying the price of currencies. Here the values of currencies vary in each moment. That’s why waiting for a long time is unnecessary. Trading with little investment is possible here. A huge benefit can be gained with a perfect trading process.
What is Forex market?
Forex market is an international market based on online. Here trading process is occurred by selling and buying of currencies of those countries which are stronger in financial sector. Here country’s currencies are paired with another country’s currencies. Every day more than 5 trillion dollar’s transactions operate here. Like this, No market is such big and popular in the whole world. Now It is popular in our country too. Near future it may be one of the best sector of earning foreign currency. It is similar to share market. But in-spite of this similarity, it is totally segmented and safe from share market. Being a bigger market,single person or country cannot control it. It keeps on in its own way.
There is nothing such extinction in this market. If anyone knows the system of trading, then whatever value of currency increase or decrease,you can gain profit. So there is nothing such extinction or recession.