The simple answer is money / currencies. Forex trading is the simultaneous purchase of a currency and the sale of another currency. Currencies are traded through a broker or trader, and are traded in pairs, for example EUR, USD, or GBP and JPY.
Because you do not buy anything physical, this kind of trade can be confusing. Consider buying a currency as a share purchase in a particular country. When you buy, to say the Japanese yen, you actually buy a share in the Japanese economy, as the currency price is a direct reflection of what the market thinks about the current and future health situation of the Japanese economy. Thus, in general, the exchange rate of the currency against other currencies is a reflection of the state of the economy in this country, compared to the economies of other countries.
Currency prices are determined by a number of factors, the most important being the economic and political conditions in the exporting country. Political stability, inflation and interest rates are all factors affecting the price of any currency. In addition, governments can try to control the price of their currency either by causing a surplus in the market (to reduce prices) or to buy on a large scale (to raise prices). However, because of the huge volume of foreign exchange, it is impossible to force one to control the market for any period of time. Market forces will prevail over the long term, making Forex one of the most open and fair investment opportunities available.
Unlike other financial markets such as the New York Stock Exchange, there is no place nor a central bank for the Forex market. The currency market is an inter-bank market, due to the fact that the entire market is operated electronically, within a network of banks, continuously over a period of 24 hours.
Forex News provides you with a section of Forex learning through which you can learn how to trade in the foreign exchange market (Forex) and see the various terms and strategies in the currency trade. The Forex Education section is for everyone and provides all the lessons and information needed by the trader, especially if he is a beginner in this field.
Introduction to the fundamentals of Forex What is forex? The history of forex trading in forex What are the currencies that are traded How to read the price of the currency What is the bip point The advantages and disadvantages of Forex tradingForex improvementsForex indicesForex trading termsExperience AnalysisTemplate Model Triangle ascending model Head and shoulders invertedSample Head and Shoulders Double Bottom Model Double Top ModelTotal Wedge ModelTop Wedge ModelRegular Triangle ModelReturn Triangle Model Triangle Triangle Model Triangle Triangle Model Science Basic Analysis