FOREX - A Liquid Financial Market
Article by Cristian Stan
Foreign Exchange Market or in another short term "FOREX" or "FX" permit banks and other institutions to simply buy and sell currencies. Rather we can say that it deals with the currencies.The principle of FOREX is to help worldwide trade and investment so that it helps businesses to exchange one currency to another. For e.g.: An Indian company allows importing US Based Company goods and they pay in dollars, although the business's income is in rupees. So, in general expression we can say that a party buys a quantity of one currency by paying the quantity of another currency.The FOREX trading started during the early 70's when countries gradually switched to floating exchange rate (where currency value is allowed to rise and fall according to the market status) from the previous exchange rate regime (It is the way a country handles its currency
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