Foreign Currency Business Market
The introduction of business
INTRODUCTION OF FOREIGN CURRENCY BUSINESS MARKET
Currency trading is a buying and selling currency on the foreign exchange (or “Forex”) market with the intent to make money, often called “speculative forex trading”.
How Forex Works
The currency exchange rate is the rate at which one currency can be exchanged for another. It is always quoted in pairs like the EUR/USD (the Euro and the US Dollar). Exchange rates fluctuate based on economic factors like inflation, industrial production and geopolitical events. These factors will influence whether you buy or sell a currency pair.
Is the concept of foreign currency trading is similar like stocks trading?
Yes. The concept of trading is similar. In the stock trading, the investor will decide to buy the company’s stock through brokers such banks and other regulated brokers after analysis made either via fundamental analysis or technical analysis .The company’ stock price will gone up if more investors buy the shares and will drop if more investors sell the stocks. The company will get more cash and start to expand their business and pay dividend to the shareholders if the company is making profit.
In the forex trading is also same. In the forex trading, the investor will decide to buy which country’s currency through brokers such banks and other regulated brokers after analysis made either via fundamental analysis or technical analysis. The currency’s price will gone up if more investors buy the currency and will drop if more investors sell the currency. If the country’s currency is strenght and the country will start to expand the business and this will attract more investors to the country. The rewards will be given to the people such free education, build more public facilities and etc. For traders, they will getting profit if the currency value is goes up and vice versa if gone down.
Example of a Forex Trade:
The EUR/USD rate represents the number of US Dollars one Euro can purchase. If you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit. Please keep in mind that forex trading involves a high risk of loss.
Why Trade Currencies?
Forex is the world’s largest market, with about 4 trillion US dollars in daily volume and 24-hour market action. Some key differences between Forex and Equities markets are:
-There’s 24 hour trading – you decide when to trade and how to trade.
-You can focus on picking from a few currencies rather than from 5000 stocks.In our proposal only involve 2 currencies (EUR/USD).
-Forex is accessible – you don’t need a lot of money to get started. Just start with USD100.
-Many ways of making money in foreign currency market.