You probably would have traveled to countries other than yours and you must have seen some currency exchange booths at airport terminals. Not just seen, you also have exchanged some currency from those booths. If you have not exchanged any currency ever, even then if you travel to some other countries you need the currency of that country in order to survive there. You go to the currency exchange booth and give the currency which you have to that booth and in return you get the currency of that country in order to fulfill your needs of buying and selling. The only places to exchange the currency are the currency exchange booths and bank, and you cannot exchange that currency on the road side shops from where you are buying your needy items and you need the local currency in that country to do your daily chores.
For example, you are British and you are going to visit Hong Kong and when you land on the Check Lap Chock airport of Hong Kong and walks into the lounge, you see a currency exchange booth on which the rates of foreign currency are being displayed. When you arrive at the lain Where British pound is equal to 9.44 Hong Kong dollars and you suddenly think that you can be much rich if you get all your currency exchanged.
You ask the person on the booth to exchange your 2 British pounds with Hong Kong Currency and he gives you 19 Hong Kong dollars by taking 2 British pounds from you, now it means that you are taking part in Forex, by selling pound and buying HK Dollars, and at the same time your happiness is going to vanish as you walk to the city outside airport. When you stop at a cool point shop and ask for a coke, all your excitement is vanished in air as the price of coca is 15 Hong Kong dollars. Your entire amount has been spent on a single coca cola.
After visiting Hong Kong for 15 days, when you reach airport on your return back to Uk, you just have realized that the rate of 1 pound has reached to 10.35 Hong Kong dollars and this is where a Forex traders learn to earn profits by playing off with the changes in the currency rates. Secondly the value of British pound has been increased in 15 days against Hong Kong dollar.
Foreign Exchange market, which is commonly known as forex OR FX and is a very major market of the world, has its headquarters in New York Stock Exchange and the rest of fits parts are in other countries.
According to an estimate, there is a total business of 22.4 Billion dollars in New York Stock exchange (NYSE) and if we take this amount for the whole world, the total business being done in the world in this market is 5 Trillion dollars on daily basis. G han (Yes Sir!), there is nothing to worry about such huge figures as it is true and in order to explore this truth you need to study Forex in depth and watch the below chart.
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