Trading… Virtually!
Currency Trading is,let’s say one of the largest markets on the planet, which effectively does not exist. Currency trading is also called Forex and trading in Forex is done in a virtual market that does not physically exist! Yes that’s true!
Some of the people in this virtual market are there, simply to buy another currency because they want to go for a holiday and then there are companies who need to exchange a currency for another to pay employees in another country. However a large part of the market is made up of brokers who earn commission on currency trading and making it a tide bit easier for the common man.
Currency trading was brought about originally, by The Babylonians, who were the pioneers of the first paper money. They would still do barter, but instead of another product in exchange, would hand over I.O.U.’s. These IOU’s eventually exchanged hands for other products, sometimes at a premium, and thus began the first currency Trade.
Currency trading is usually done by retail investors, banks, brokers, other financial institutions, corporates doing business and so many more people. Even the common man does it now because currency trade, unlike equity, is not limited to a particular timing. This is one market that is open 24 x 7!
People tend to buy a currency at a lower price and then sell it at a higher price keeping the difference as a profit. This profit is then reinvested into the trade and money keeps multiplying, although sometimes, a currency can take a fall and cause severe losses. This is why, if interested in currency trade, the choice of a right broker is very important, because only he can help you make a good profit while fulfilling your original quest for currency trade.
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