What is Forex? How to Take an Action?
To transact in forex market is very different in mechanisms than any other markets. Therefore, it is possible and easier that you can earn more money with this forex mechanism. Once transaction mechanism of forex market is solved by a person, then maximum profit can be gained with diminishing risk level of investments. To solve this mechanism, there are a lot of free online courses.
In fact, forex transactions are based on easier ground than other markets. Here a question arises in minds as what is forex? In addition, how do an action to be taken in forex markets? Speaking in terms of currency; forex transaction is composed of three steps. First one is to buy a foreign currency. Then secondly a second country’s foreign currency is bought by first country’s currency. Lastly, there would be a difference between buying and selling processes. This difference is profit arising from forex transaction. In forex market, transaction is taken with investment tools by parities which show comparison value of two different foreign currencies.
In general, although it is said that actions are taken with currencies and parities, on the other hand, commodities also pun into the process of investment partially with parities. Giving an example, in finance market, gold is traded at the exchange based on US dollar. At the result of buying-selling of gold, the profit becomes dollar as outcome of this trade. Likewise, silver and petroleum are traded based on dollar at the exchange. Reason to mention them as parities is the formulation of them as XAU/USD (gold/dollar). In the concept of parity, while a currency is bought, at the same time the other is sold. Thus, in forex market, bi-directional transaction possibility is available differently from other exchange markets.