Forex is a short of foreign exchange – a price of currency when it’s traded for a reason. For example when we’re on a business with people on other country and we’ll do such transaction with them with our money. On this example, we’ll send them money via bank transfer. Unless people we’d like to receive our money have same account currency with us at their bank, the bank need to convert the currency of our money into their currency.
The process of currency exchange done via many possible ways, one is as on above example, the other is including but don’t limit to through a money changer. Lately, it’s also happened on almost every corner on the world where the internet connection is found. This also often named as forex online trading. Forex online trading activity is supported by many parties, i.e. liquidity provider, bank institution, forex brokerage company, and trading platform developer company.
To do such online trading activity a retail trader needs to open a trading account through a brokerage company that will bridge up the transaction between the retail trader and the forex market. Unless the forex trader is a big financial institution, the use of brokerage company become a must to make smooth deal with the forex market. The brokerage company itself connect to the forex market through a technology, that the latest one of, named as ECN (Electronic Communication Network). This technology is very advance so it could connect to the forex market around the world and the transaction done through it usually spent some milliseconds and won’t take the trader’s time too long.
Yes, you’re right. We already know that the forex market exists around the world, but where is it? The forex market existence contrary with stock, bond, or futures market; the forex market virtually exist and doesn’t have a physical place on the world. It exists by the connection within retail traders, brokerages company, and other financial institution involved on the forex industry. When the above-mentioned connection is gone, the forex market will disappear too. So, the existence of the forex market is lots of depend on its activists and don’t on its physical address like any other financial market around the world.
On forexzine.com, we’ll talk lots about forex market and other subjects that have relation with its existence and support its activists. Whilst a quality content is a must on a website like this, many mistakes or errors could be found on forexzine.com’s content, so a forgiveness heart is requested while use forexzine.com’s content.
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