What is Currency Market???????

Currency Market is the market which plays on the fluctuation of Currency Rates. In an open Market Economy the rate of Currency is determined by the amount of Export the Country does. Thus the currency Market plays on the Level of Fluctuation an investor can think of and thus the Margin is his/ her income. This is one of the Fundamentals of Finance.

It is estimated that the currency market is a total of 6.6 Trillion every day in the world. Thus it is one of the biggest and largest market in the world. Traders trade on the upward and downfall of the trading price of the market. Thus they earn if the value of currency increase and lose if the value of currency decrease.

for example if a trader has purchased a Currency for $1 and it's value increased to $2, then the margin is $1 profit. Similarly, if a trader has purchased a currency for $2 and the price decreased to $1, then the margin loss is $1.

As shown in this image, if you purchase a dollar for your currency of 50 and if the price of a dollar increase to 100 of your currency, then you make 100-50=50 profit. Similarly if you purchase an Euro for 50 units of your currency and it increases to 100 units of your currency, then you will make 50 of your currency units profit.

If you want to trade on currency market, you can use platform like www.etoro.com and try some trade practices..

 

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