Trading Basics
What is Forex
Forex (or FX) means foreign exchange. What exactly does this involve? Exchanging one currency for another – it’s as simple as that.
Forex in Everyday Life
Ever travel abroad and need to exchange your money for the local currency? Believe it or not, that's a basic forex trade!
Imagine you just landed in New York from Paris, euros burning a hole in your pocket. Gotta grab a burger before exploring the city! But how to pay with euros? The answer: exchange your euros for US dollars at an airport currency booth. This simple exchange is your first step into the world of forex trading.
Hold on! You traded 10 euros and got $12.74? That's the magic of exchange rates, giving you more of one currency for your other. Fast forward, you bid farewell to the Statue of Liberty and head to Berlin. Time to swap those leftover dollars back to euros. But wait, you get less euros than expected?
That's because exchange rates fluctuate. Inflation, economic shifts, and even supply and demand can all affect a currency's value. So, the exchange rate that worked in New York might not be as sweet in Berlin.