Prenfx Group – For those who have expertise in finance, the term forex trading may be familiar. But for new people, forex trading is a foreign term. We will give a little explanation about the forex trading business.
What is forex trading? Forex is an abbreviation of Foreign Exchange (currency exchange), this business involves the exchange of currencies from different countries. A business that has the concept of buying and selling like in a traditional market, but the physical form of trade that is traded is intangible because it is in the form of currency.
An example of forex trading is buying Euros on the EUR/USD pair, so in this case we are buying Euros and simultaneously selling USD (American currency). In the USD/JPY currency pair we take a position to buy USD (the American currency) then at the same time we sell the YEN (Japanese currency).
Due to the difference in supply and demand at a certain time, resulting in fluctuations in the value of one currency compared to another. This difference in the value of money at one time is then used to take advantage. It can also be interpreted that forex trading is essentially an activity of exchanging one currency with another continuously for profit.
Forex is like a double edged sword. With forex can make us rich quickly, but the opposite can also consume our capital in an instant. It doesn’t matter whether you consider forex as an investment or as an ordinary trade, what is clear is that forex has a high risk factor. So understand the risks in forex and don’t make the wrong move.