Friday, April 26, 2013

What is traded at Forex Market?

What is traded at Forex Market? It is an easy answer that what is traded in forex market. The answer is currency trading. All over the world there are many official currencies that are used in forex market, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world's most actively traded currency. When we buy USD, then basically we buy a share of US economic. We think that the economic condition of US is developing. After increasing price, we will sell it. Then we get profit from this trade.  


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