WHAT IS FOREX?
The Foreign Exchange (Forex) Market is a global market where currencies are traded. Currencies are traded every single day, whether it’s through the export and import industry, banking industry or tourism industry, currencies are one of the most traded securities in the world. The market is open 24 hours a day, five days a week, across every time zone.
One of the most unique aspects of this market is that it is all conducted electronically, making it one of the most accessible markets to consumers. One can easily access the Forex Market via a bank, currency exchanges, or brokers such as EXE Markets. Brokers provide the easiest and most convenient way to trade personally anytime and anywhere through existing trading platforms.
Though it is relatively new, the Forex Market began when consumers started trading currencies for financial gain, just as in the stock market. Currencies will be paired up against one another, the value of each will change depending on the supply and demand of each respective currency. One can think of this as a “tug of war” between currencies.
USD/CAD (U.S. Dollar vs Canadian Dollar) OR the XAU/USD (Gold vs U.S. Dollar). In the Forex Market, its either you buy the base currency (located on the left side) or buy the quote currency. With enough volume provided by the global market, the value of either will shift. The differences in prices from the point of sale will either give the trader a profit or a loss.