What is Forex?
Forex is:
the world financial market. Forex market participants are traders, brokers, central and commercial banks. The commodity is a currency, which price is formed on the basis of an agreement between the participants and depends only on the demand and supply for a particular currency.
The world financial market for currency exchange appeared in 1976, after the world economy had switched to free exchange of currency, leaving the “gold standards”.
Trade in the Forex market is carried out by buying and selling currency. Thus, the trading participant speculates on the price of different currencies. An important feature of forex trading is that there is an opportunity to earn in any market situation, due to the fact the exchange rate of the currency pair carries out fluctuations at different times. A currency pair is an item of one currency expressed in the item of another.
That is, the pricing principle of currency pairs is the same as in currency exchangers. For example, you can buy 1 euro at a price of 1.18578 dollars, if the price of EUR/USD currency pair is 1.18578.
