What is Forex? Learn Forex Trading

Forex means Foreign Exchange and is also termed as currency exchange or FX. This is a market place where currencies from worldwide get traded and exchanged. It is a market with an estimate of more than 5 trillion dollars’ daily exchange. Even if you combine all the world’s stock rates, it would barely meet the Forex trade rate.

To know further about the favorable trading options alongside other investments, explore the article below over forex trading and exchanges. 

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Being a Pakistani you must have had checked rupee’s rate into dollars at least once in your lifetime and have had known the esteem of your state’s currency. If you’ve ever visited a foreign country, you would have definitely got your rupees converted into dollars or some other currency to get done with all the essentials and formalities and to spend your money on all that you love. This is when you get involved in the process of Foreign Exchange where the exchange rate is dependent on the supply and demand of the currency. This rate continues to change constantly according to the fluctuations in supply and demand. This process of forex exchange ultimately tells you how much dollars you will get in return to your rupees.

Going back a few months when dollar rates in Pakistan lunged down to Rs. 76.25 from 140, people went crazy over social media. This was obviously due to a technical default and the rates stabilized very soon. Besides this technical problem, these rates keep regulating on a little or a wider scale every now and then. One day you might see the rates at 138.2 and the other day at 138.4. In the short term, this might not feel as giving a greater impact. However, when it comes to a business deal in a multinational company these few rupees can move mountains.

In the long haul, whether you’re a tourist in some unknown country or you’re a business dealer, you would always consider exchanging your currency when the forex rates would be more beneficial to your side.


In contrast to stocks, you can exchange up very easily in forex. Based upon what your sharp mind predicts, you can exchange the currency over its market price or its future that you presume. You may sell a currency if you have a vibe about its decline and similarly, you can buy one if you assume a currency to surge above. Given that the forex market is huge, you can very conveniently find a buyer when you’re about to sell and a seller when you need to buy as compared to the markets in other businesses.

Recently, China has been in the news because of depreciating its own currency in order to bring in more exchanges into the country. In the light of this event, if you believe that this pattern will continue to proceed, you can make a forex exchange by selling the Chinese cash against any other money such as the US dollar. The more the Chinese money cheapens against the US dollar, the higher your benefits. In the event that the Chinese cash climbs up in esteem while you have your selling position open, this might cause you a loss and so you might need an escape from this exchange. Also, the past performance here is never a marker of future outcomes. The exchange rates can reach heights in your favor one day and on the next, it may fall off making you get in deficits and sell off.