Posts Tagged ‘leverage’
Forex or foreign exchange refers to the trading of currencies. Trading of currencies can be for two reasons. The first of these is the conversion of currencies done by those companies or governments that buy or sell services and products in other countries and therefore need to convert their profits into their own currency. The second of the reason for forex trading is that of speculation or trading for profit. Since trading involves buying low and selling high, forex traders buy currencies, which are lower in value when compared to the other in the pair and sell it when the value rises.