Read full article here...
Currency trading and day trading stocks have some similarities and differences. I added this section to discuss this further and provide traders with basic information necessary to day trade the forex (foreign exchange) market. Today, the foreign exchange market, also known as "FX," provides traders with some advantages absent from the stock market, so it is worthwhile for them to learn a bit more about the biggest financial market in the world.
When someone visits a foreign country and pays for a product or service in his home currency, a currency exchange takes place - an exchange of the home currency for the foreign currency. This can happen if the tourist pays with a credit card issued by a bank in his home country (the bank converts the price of the product or service to the home currency based on an exchange rate, charges the tourist the corresponding amount in his home currency, and pays the merchant in the foreign currency).
It can also indirectly happen if the tourist first goes to a bank in the foreign country, exchanges an amount of his money to the foreign currency (based on an exchange rate), and then pays the merchant in the foreign currency. Either way, a foreign exchange transaction takes place. The home currency is exchanged (sold) for a foreign currency (bought). If the tourist is American and he is visiting France, he will be exchanging dollars for euros. In the world of foreign exchange, it is said that he is selling dollars and buying euros at the same time. This is the same thing that happens when an investor day trades currencies online, although the trader has access to better prices than the tourist.
Read more about basics curency trading on www.forex-tradingtraining.com
No comments:
Post a Comment