What is Forex

Forex is the largest financial market in the world.

Forex is the largest financial market in the world.

If you have ever traveled to a country where they do not use the same currency as in Europe (currently EUR), you had to convert money into another currency in the currency exchange. You’ve certainly noticed the exchange rate of the currency pair for which you have exchanged money.

So, you were already dealing with Forex then. In some way. If you visited Japan, you sold euro and bought Japanese yen. When you returned, there were a few yen left and you changed them back to the euro. If during this period the exchange rate has changed and, of course, at least a bit, you have already made a difference in value – if the value of the euro strengthened, you were at a loss, but if the euro was at the time when you were in the pocket of a yen , weakened, you profited. Let’s take a look at a concrete example from some of the current topics of recent history.

Example: You must have read before the time that the value of the Swiss franc has risen sharply in comparison with the euro (all those who have loans in Swiss francs are at a loss).

Let’s say that the day before you had a $ 1000 in your pocket and swapped them at francs at a rate of 1.20 francs per euro. You received 1,200 Swiss francs, as the euro was stronger.

The next day, the Swiss franc gained the value and you get 1 € for 0.8 francs (in the most extreme case and time). If at that moment we were to replace the francs back into the euro, we would have a € 1,500 in the wallet.
So 50% yield in one day. But, unfortunately, it could be quite the opposite either.

What have you got to do for this?

In fact, very much. Unfortunately, Forex is not just easy money, it’s hard work, unfortunately. But interesting is if you love the number. In profit. Therefore, it is essential that you take into account all three forex analyzes that we have already discussed here. And above all, to read ahead and regularly visit our forex school.

Forex trading providers give you everything you read in the case above with leverage where you can profit 10 times, 50 times, or even 100 times and more, with minimal change in the course. But at the same time, the risk increases, so it is important that you are aware of what and how much you risk and what are the potential for profit.

All this will be touched upon in the continuation of our course

Leave a Reply

Your email address will not be published.

This website uses cookies. By continuing to browsing the site, you agree to our use of cookies.