Term “Forex” is an abbreviation for “foreign exchange”. It is normally used to describe trading in the foreign exchange market. Forex trading is similar to stock trading. Buy the currency pair when the price is low and sell when the price is high. For example, if a dollar is expected to weaken in value in relation to the Euro then in this situation a forex trader will make profit by selling the Dollars and by buying the Euros. If trader thinks that any currency will rise in the future, a forex trader will buy and make a profit at high rate.
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In forex there is no centralized or fix place that produces the rates. It is global decentralized marketplace that determines the values of different currencies. Transactions are conducted by several market participants in several locations. An increase in supply or a decrease in demand for a currency can cause the value of that currency to fluctuate and that’s how prices are determined. The exchange rate between two currencies constantly changes. A big benefit to forex trading is that you can buy or sell any currency pair or gold etc at any time you want. If you think any currency will rise in future then you can buy any time and sell any time in the same market with just one click.