Interestingly, today’s forex has become a very promising business field. For those of you who want to know more about forex, this article will provide a review of the understanding, function, and managed forex world players who hopefully can be additional useful information for you. You can also learn about commodity broker on http://www.cnie.org/highleverage/commodity-broker-with-high-leverage.html.
In the process, forex has some main functions that are very powerful to the perpetrators. The purpose of forex is classified into 3:
1. As we know, the daily economic activities of human beings sometimes require funds in the form of currency from other countries. Whether it’s used in travel, shopping, business, or storage. The currency exchange can be done with a system called Clearing. Well one of the functions of the forex itself is to provide such services. For clearness, examples of forex services that you usually meet in various places, ranging from banks to the exchange money in various places.
2. Hedging. This is an act that is usually done by a forex trader as a “guarantee” that the value of investment funds is not reduced or lost when he sells forex in 2 different markets. In this case also play the banks, both domestic banks, and foreign banks.
3. Conduct the arbitration. Arbitrage is basically the difference in interest rates of 2 different currencies. And arbitration is an act done to benefit from the difference in the currency itself. This is simply done by buying a currency that is low in value in a country and selling the currency in a country where the currency is high.
Forex is an abbreviation of foreign exchange or foreign currency exchange. Foreign currency trading occurs because of the foreign currency needs of the community, for example:
– For vacation needs abroad.
– Buying goods from abroad
– Business activities
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