Introduction to Forex Trading


Introduction to Forex Trading
A New Entrant's Perspective

What is FOREX? and What does Forex Trading mean?

“Forex” or FX stands for; “Foreign Exchange”.
 Essentially, Forex Trading is about the exchange of one currency for another.

Each county has its own unique currency (money) used in that particular country. So when you intend to travel to another country, you are required to exchange your country currency for currency of the country you intend to visit.

In this ‘currency exchange’ exercise, you sale your country (local) currency and buy currency of the (foreign) country you will be visiting.

For instance, an American visiting South Africa will have to sell his Dollars (US$) and buy South African Rands (ZAR) so that he is able to buy stuff on the South African markets.

The Foreign Exchange market (FOREX) is the largest financial market in the world.
Just to give you some perspective, around US$5Trillion is traded every day on Forex market globally.

 OJ Mwale  - Sani Global

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