Foreign Exchange Market By The Forex Trading

The answer is simple: money. Forex trading is the simultaneous buying one currency and selling another. Currencies sold through a broker or dealer, and sold in pairs, for example, euro / dollar (EUR / USD) or the British pound and Japanese yen (EUR / JPY).

Because you are not buying anything physical, such trade can be confusing. Think of currency to buy the portion of land to buy. When you buy Japanese yen for example, you can actually buy a share of the Japanese economy because the price of currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.