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What is the function of forex market?

The functions of forex market serves two main functions: converting currencies and reducing risk.
There are four major reasons firms need to convert currencies.
First, the payments firms receive from exports, foreign investments, foreign profits, or licensing agreements may all be in a foreign currency. In order to use these funds in its home country, an international firm has to convert funds from foreign to domestic currencies.
Second, a firm may purchase supplies from firms in foreign countries, and pay these suppliers in their domestic currency.
Third, a firm may want to invest in a different country from that in which it currently holds underused funds.
Fourth, a firm may want to speculate on exchange rate movements, and earn profits on the changes it expects. If it expects a foreign currency to appreciate relative to its domestic currency.
I think this information may be helpful to you.
For more details please visit: http//:forex.com
 
Its a simple buy and sell of currencies. If you have US dollars and you want to have euro you simply exchange your us dollars to euro. Now the price will going to change depends on the demand. if theirs lots of demand for euro then euro will going to increase its value.
If theirs a demand for us dollars then us dollars will be stronger.
 
I think the question is just similar to what is the meaning of forex trading yes that is true and correct forex trading is very much risky.
.....it involve buying and selling of currency online and make some good amount of money after the right market and trade is been excecuted.
 
Yes forex is just buying and selling of currencies but the market is so big that it's just hard to understand where the money is coming from. So it's not that easy to understand forex fully well although we may get an idea what forex is about.
 
Yes, it's a very big market and it's really hard to understand the market that's why the more we engage ourselves in Forex trading then the more we understand because we are continuously learning about the Forex market.
 
Its related to financial world so imagine how big it will be that most of the countries have used of the currency trading and also use of the money as way to earn. Forex market influence every country as they are directly have effect or connected to it. Like the economy of a country or the banks.
 
Yeah i think you guys are right.A forex market everyday gets complex and complex everyday for traders to understand but an advantage is that the more we trade the more the knowledge we get to accumulate.i think forex to me is a worldwide market.
 
Yes that is true forex is a worldwide market the more we trade the more we earn in forex business.
So all I have to say now is that you are the one who hold your destiny so put your possible best to learn and you will see the function of the market

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Yes that is true forex is a worldwide market the more we trade the more we earn in forex business.
So all I have to say now is that you are the one who hold your destiny so put your possible best to learn and you will see the function of the market
 
It's in our decision and the market. If we can't decide well but the market is really difficult to analyze we can always goes wrong with our trades and lose. Though, that's forex trading we need to make more of winnings by having more correct decisions and analysis so we can't judge ourselves by just have few trades if we are good for trading or not.
 
please forget about forex definition :32 (35): what if we start a game like prediction of e/u for monday? will it be up or down? anyone here dare to make good own prediction or own analysis?
 
It's not easy to be in forex we should have to be well prepared . It's not just something we would just make aa guess and just hope that we would make good profits. So I think forex is another kind of business where you would need to be prepared with a lot of knowledge and experience as well.
 
appropriate to become a professional trader takes knowledge and experience as if we are just guessing in the trade you can bet we will not even get a good profit will actually hurt ourselves, and therefore to become a professional trader takes experience and knowledge enough
 
Yeah that's true.we should always be having it at the backs of our minds that to become great in anything,it would be taking an extra effort from the person involved.guys forex requires alot so for the few we are involved in,we should be putting in our best.
 
It is included of course the study of the forex market. Even we are not liking to have check the news worldwide for the possible big events and changes in the market we will need it to learn it. We need to have more effort to gain more knowledge to have better trading, which we pertain to the fundamental analysis.
 
Forex is a potential business but we should not forget that it is also very risky and uncertain. Though with proper knowledge and experience we can increase our probability of making profits in it we cannot make this probability 100%. Therefore Forex should never be made our only source of income though it can be our primary source of income.
 
And thus, it's also be disaster for a trader to not able to make profits. So, this is just fair enough and like to be a competition for those who will going to be successful and those who will not. The market is also fair enough seeing that it's unpredictable make it difficult for everyone to know it's trend and our analysis will differ.
 
Yes, it’s very helpful for us. in forex market we are buying and selling that’s very simple concept. In forex, we are trading with currency and using currency pair USD AND EUR both are important currency pair in forex market.
 
It is about the exchanging of the currency and that is how the work for the bank and the ccompanies is done these dyas. if you know how the banks are making the money off the currency exchange then you know how that works there for most of the market time.
 
Not only the currencies or pairs but also metals and commodities. It has the big influence in the Financial world and we can see that many people around the world trade and make it as big business. And we already know that everyone has the same opportunities for trading.
 
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