functions of the foreign exchange market, also known as the forex market.
1. What is Foreign Exchange?
The foreign exchange market (FX) is the global currency market where currencies are bought and sold between different countries. Currencies are exchanged based on their relative value compared to each other. Currency pairs are traded on the FX market.
2. How does the FX market work?
Currencies are bought and sold on the FX market based on their relative values compared to each other. When the price of a currency goes down, people buy more units of that currency. When the price of the currency goes up, people sell more units of that currency and use the proceeds to buy
something else.
3. Why do we need the FX market?
We need the FX market because we want to trade our money for goods and services outside of our own country. We can't just go to China and buy everything we need; we have to pay someone else's currency first.
