Investing in currencies
What is this currency trading?
Basically, the idea that trading money can earn you money seems counter intuitive. Actually there’s a lot of money to be made in this kind of trading. I have observed lots of people engaged in currency trading without even realizing it, as a matter of fact.
For example, every time a person visits another country and swaps his country’s currency for the local currency, he’s involved in currency trading. From an investment point of view, currency trading is known as foreign exchange, or forex.
Although forex is the largest financial market in the world, it is relatively unfamiliar terrain for individual/retail traders. Just a few years ago, foreign exchange business was primarily the domain of large financial institutions, multinational corporations and secretive hedge funds.
But with the advent of the internet, times have changed. Now individual investors have ventured into this market and more and more people are hungry for information on this fascinating currency trading market.
In short, currencies are the money of different countries, and currency trading is the buying and selling of these currencies.
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