Category Archives: business news

What is Forex and Why is it So Big?

Many people have heard of trading, which involves buying and selling assets on global markets to make a profit when they appreciate. Forex is one of those markets, and is the place where currency is exchanged between traders and institutions as an asset.

It is undoubtedly one of the most popular markets in the world, so here is some useful information about how it works and why it is so big.

Exchange Rates

Since forex involves buying and selling currency, it is global exchange rates which govern its activity and the value of each currency pairing. These exchange rates obviously differ depending on which currency pairings are traded, and are influenced by a number of different factors.

One of the main things which influences the value of a currency is political events, which often lead to economic uncertainty as well as uncertainty over the future of that currency. After the …