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What are you really selling or buying in the currency market?


Abdul

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Well If you have a basic understanding of forex market then you can find that any currency pair for example EUR/USD has base currency (EUR) and quote currency (Dollar). Base currency can be called a good and quote currency - money which you give (when you buy the good) or take (when you sell the good). Know my explanation lacks clear and vivid examples, you can find better at my broker educational resources - https://www.hotforex.com/en/trading-tools/trading-webinars.html

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  • 1 year later...

We are selling currency in forex, even sounds like virtual money but that is the real money which we sold. The process is quite fast compared to manual way where you must go to exchangers and exchange the money. You can think it as money exchanger but using internet as its medium.

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Sidejob has been said that all it is all about currency, in fact it is i exchange not buy or sell. So i have few dollars and exchange it to some euros for example. But the main point of fx is how to make profit through those exchanges, so this is why we speculate, and hope the price will rise or fall and the we exchange once more to get profit.

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  • 2 weeks later...

Well let me clarify this first before continue my post, Isn't this is obvious for us all? I mean we are buying one currency and the sell the other currency, all this called exchange. Technically we are not buy or sell but exchange one currency to the other currency, we trade what previous is just another commodity.

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  • 1 month later...

It is basically called exhange rather than sell or buy, because we give our for example dollar to get yen or give our EUR for the sake of get dollar. I don't know since when it called sell or buy maybe because forex become more speculative than before and it connect many people around the world and now forex is like selling and buy because it has its own price tag.

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  • 4 years later...

Forex trading is basically exchanging foreign currencies at the current price from one country to another. In this business traders don’t need to invest huge money because the broker give leverage so you can earn good money without huge investment. One of the good brokers ForexOne I select for exchanging my foreign currencies because in their platform they allow – stocks, bonds, cryptocurrency, indices, shares etc. at the best price in this market.

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  • 2 years later...
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