What Forex Trading Is
Forex trading is a term that is familiar to you, especially seeing the increasing number of advertisements regarding this one activity here in Taiwan. More information about this can be found at http://www.forextradingchina.com/en/taiwan/. Foreign exchange or commonly abbreviated as forex is a foreign currency exchange transaction. This term is better known as foreign exchange. The occurrence of this foreign currency exchange is none other than because of the need for this foreign currency, such as trips abroad, shopping for goods from abroad, and so on. Besides the need for non-profits, some people trade forex intending to make a profit. The party will buy a certain nominal amount of currency to get the difference in profit. This kind of trading player is certainly experienced and always pays attention to various factors that influence the rise and fall of world currencies.
The world community could not buy foreign currency before 1944. For example, an American with only dollars cannot buy euros while traveling to European soil. Even when he is forced to pay for some of his necessities, United States dollars will not be accepted as a means of buying and selling. Instead, all international transactions in all corners of the world use the international gold price as a reference for all countries’ currencies in international trade. It was only after 1970 that the United States dollar currency could be used as an acceptable means of payment worldwide.
Those who “play” forex — commonly called traders — will manage and execute transactions that can be done by themselves or using the services of credible brokers. Brokers in this case not only act as intermediaries, but also provide facilities such as security systems, separate accounts, transaction facilities, and so on. This broker is also the informant for traders to carry out market analysis. Please note that in the forex market there is no center or reference for the value of a currency. In other words, no individual, institution, or organization can move the forex market unless the party has very large funds to move the market price even though in the end the effect is not very significant.