Forex trading is the act of trading currencies. Currencies are important to most people around the world, whether they realize it or not, they need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate. One unique aspect of this international market is that there is no central marketplace, Rather forex trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange.
forex trading means trading Foreign Exchange, hence the name. It is a process of exchanging and trading currencies, mostly with the aim of earning money or profits through it. For the exchange to take place, there must be a currency to be changed, that is called the base currency; and the target currency wished to be changed to, called the quote currency. As such, there is no such concept such as "absolute value" when it comes to currency trading. Rather, prices are determined by its relative value by setting the market price of one currency if paid for with another. The exchange rate is usually set in agreement between two parties, usually financial regulatory institutions or the governing bodies or a country/region. As such, in many places running under market mechanism, the exchange rate for currencies is determined by price movements after being set.
Global music markets limited
Play The Market, Trade The Artist, Create The Value