ALL ABOUT FOREX

Currency market or Forex (Foreign exchange) is the market where you can buy and sell currencies in real time in order to benefit from changes in currency exchange rates. Unlike other financial markets where you buy an asset in the hope that it appreciates on the Forex you are buying one currency against another currency in the hope that the first shall be compared to the second but you can also sell one currency against another currency in the hope that it will depreciate relative to the second.

On the Forex, we have said, you buy or sell one currency against another currency. Indeed, the value of a currency can not be assessed in relation to that of another currency and that is why you invest in a currency pair and not a single currency.

For example:You want to invest on the dollar because you think it is currently very low against the euro and should be strengthened in the long term. You will then take a position for sale on the EUR / USD (Euro / Dollar). In this case, you sell the euro against the dollar, well you invest in a reduction of the euro against the dollar which is the same that a rising dollar against the euro.