Basic Knowledge of Forex Trading

Foreign exchange- Usually refers to various means of payment that can be used for international settlement in foreign currency. Where foreign currency, foreign currency deposits, foreign currency securities Like government bonds, treasury bills, corporate bonds, stocks, etc. and foreign currency payment vouchers like tickets, bank deposit vouchers, postal savings vouchers etc. Foreign exchange is the abbreviation of international exchange.

Major foreign exchange varieties-
Hard currency: refers to the currency in the international financial market where the exchange rate is firm and freely convertible, the currency is stable, and it can be used as an international means of payment or a means of circulation. Mainly: USD, GBP, JPY, EUR, etc.
Soft currency: refers to the national currency that is weak in the exchange rate in the international financial market, cannot be freely exchanged for other countries' currencies, and has the low credit rating, mainly including Indian Rupee and Vietnamese Dong.

What is Forex Trading- At present, the main types of foreign exchange trading in the foreign exchange market are like US dollars, euros, Japanese yen, British pounds, Hong Kong dollars, etc. These foreign exchange varieties are currently trading in the foreign exchange market with frequent transactions and large trading volume; at the same time, they also It can be seen as a barometer on the foreign exchange market. Their dramatic and frequent changes often lead to drastic changes in the entire foreign exchange market. It is decentralized market here countries are exchanged there currencies to each other. Forex trading is buying one currency at a time and selling another currency. Money is traded in the form of a “pair” through a broker or dealer. For example Euro and US Dollar (EUR/USD) or British Pound and Japanese Yen (GBP/JPY).