Forex begins

Planning retirement with various investments is main theme in this blog. Preparing our self to retire rich is the goal of this site. Investment becomes our alternative to retire rich. There are some investment instruments we may choose for retiring rich. We had explained much in stocks investing and little explanation in mutual funds and bonds. Today I want to tell about another instrument we may choose as our ‘basket’ in order to retire rich. And it is foreign exchange trading also commonly called as FOREX.

Talking about Forex is talking about countries currency. The value of currency is different each other. This difference which makes one of currencies can be exchanged with another currency. All of the big countries currency has a floating system that means these countries let the value of currency exchange move up or down freely according to market fluctuation. Because of its fluctuating, the value of currencies exchange can be traded.
There are several factors which caused foreign exchange (forex) trading is growing rapidly. One of them is trading activities among world countries, wishing big profit from forex movement and developing information technology which makes everyone possible to do some forex transactions.
In forex trading, there are a lot of currencies which traded in. But the most traded currency is the world main currencies like below:
USD: US Dollar
GBP: Great Britain Pound sterling
EUR: European Union Euro
CHF: Switzerland Franc
JPY: Japan Yen
These currencies traded in pairs, like GBP/USD, EUR/USD, USD/JPY and USD/CHF. It means when we buy a currency, we also sell its pair. For example, when we buy GBP/USD, it means we buy GBP with USD or sell USD with GBP. When we buy EUR/USD at 1.400, it means we buy EUR 1 with sell USD 1.4000 or we can say that EUR 1=USD 1.4000.
See you in next article! Thanks for reading…