Forex trading is short for Foreign Exchange Trading and as the name implies, it involves the buying and selling of foreign currencies for profit. Different countries use different currencies.
However, if the countries want to buy and sell products and services from each other, there must be a system that determines the value of each country’s currency in order to facilitate the trading process.
A foreign currency exchange rate must be determined which will dictate what each currency is worth when measured against the other currency.
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