It’s clear that we live in a global economy. Along with that, most nations trade with one another. We get fruit from countries that grow fruit, when we can’t grow because of the season.

Each of these countries has their own currency. And, most of these currencies differ in value. For this reason, companies have to keep up with the exchange rates, as they are changing all the time. In addition, they have to pay wages in different nations that handle their product.

The larger part of the market is made up of individual people who trade currencies. Since most currencies are fluctuating constantly, these currency traders try to take advantage of small fluctuations in exchange rates. They call this process a foreign exchange market or Forex for short.

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