I know hardly anything about the economy let alone trade markets. Please explain it to me in the most simplistic of terms. Thank you :)
Hi there, as much as the name Foreign Exchange Market suggests, there is no centralized market for Forex :)
The entire "market" is made up of the central banks, big companies, banks, retail traders like you and me etc.
This is why the forex market has great liquidity and operates 24/7 on all working days.
As the name suggest, this is a market for exchange of currencies.
Besides traders doing exchanges for speculation, there are many purposes for engaging in this market.
Businesses exchange currencies so as to do business overseas.
Central banks manages their reserves through forex.
Banks conducts remittances of money etc across countries.
The list goes on.
That is why, the dynamics of the forex market is very vibrant as well.
For example, the recent interest rate increase by the Reserve Bank of Australia not only strengthened the AUD, it apparently brought positive sentiments to other currencies too.
Therefore, if you intend to trade in forex, it is important that you do your homework and be prepared.
Proper money management is probably one of the best tip.
I will also like to invite you to my blog for newbie forex traders. You can read more about forex there too.
All the best.
You can buy and sell currencies from other countries...you can learn how to do it from livetradingdemo.com
It offers sales of most foreign currencies.
IT is an (electronic) market where currencies are exchanged (bought and sold)
it is just like shares. you can buy & sell