Service Overview
What is Forex?
Forex is a global market allowing to exchange the currencies. The word itself comes from the first letters of Foreign Exchange meaning swapping money of one country to another. Millions of people and businesses around the world exchange currencies every day and that creates great opportunities to benefit from.
So how is money made on Forex?
Let’s use a simple example. Imagine you are from the USA and you are going on holiday to France. You go to the exchange office to buy some euros for your trip. The exchange rate is 1EUR = 1,1USD meaning that you can buy 1 euro for 1.1 dollar. You give the cashier 1100USD and receive a nice, round 1000EUR for your trip.
Two weeks later you come back from your trip and it turns out that you actually paid for all you expense by card and have not spent a single euro of your cash.
So you want to exchange that 1000EUR back to dollars. However, the exchange rate has changed since and it is now 1 EUR=1.2USD. You go to the cashier with 1000EUR and you get 1200USD. You just made 100USD profit exchanging currencies!
Obviously no one is really carrying cash to exchange office to profit from changes in currency prices. There are specialized broker platforms allowing to easily trade currencies from any place in the world which has an internet connection.