Fundamental things about forex

Forex or forex trading has become a very alluring and hugely profitable market for currency and financial traders and investors all over the world. the latest figure from a credible financial source has shown that this market of forex trading has a daily worth 4 trillions US dollar. Forex in terms of language is the complex of two words of foreign and exchange. In terms of essence, forex can be simply understood as a platform or venue for international currency trading and exchanges. Forex can be seen similar to stock markets where shares and stocks are traded and exchanged while in the forex shares and stocks are international currencies. On forex trading markets, some strong and popular international currencies like US dollar, Euro or UK Sterling will be seen as the standard currencies that are used as benchmark to rate other minor national currencies. If you want to find out more about this issue, please visit this link of free online trading.

The next question I want to raise is why money can be traded. Indeed, money can be seen as a special goods that actually it is can be traded like many other commodities. However the trading and exchanges of currencies and money on forex is very different from the ways gold, oil, metals or many kinds of commodities being traded on the world today. This is because of what I have said earlier that the value of a currency on forex is rated by the standard currencies. Indeed, the significances of standard currencies like US dollar are huge on international trading activities. For example, if you are a Turkish of course you use Lira - your national currency, then you have a holiday and take a trip to Thailand or China, you visit a restaurant for dinner and pay for your dinner in Lira. I am sure that there will be no any Thai or Chinese restaurant owners will accept that payment in Lira if you and they do not have any special deal. Meanwhile, the story will be very different if you are Turkish or bear any other nationalities and you bring US dollars or other popular standard currencies, your payments in those currencies are widely accepted in most parts of the world.

Evidently, US dollar and many other kinds of standard currencies that I have mentioned above are not only widely accepted for traveling but in daily international financial, commercial and economic activities as well. These currencies are used in international contracts, deals, imports and exports. As a result, forex trading markets were born to help people, traders and investors to exchange and trade their money.