Maybe we need to clearly understand what is meant by the term forex trading. Forex is the abbreviation of foreign exchange (forex) or foreign currency, for example, the US dollar, Ringgit, Yen, Euro, Singapore dollar, and so forth. While the exchange means the exchange or sale. So broadly, it means foreign exchange is the sale of foreign currency. Can be in the form of cash as we change money in the bank, but the term is more often used in the sense of selling and buying of foreign exchange through the exchange mechanism measure.
There is no difference trading with foreign currency and other goods, namely the exchange activity, in which the owner of the goods delivered the goods to the buyer; the buyer will then submit the money as the trade of goods was.
If in the market, the price of one chicken is RM10, then we must give RM10 to get the chicken. Now, in the forex market, we also must give some ringgit to buy for U.S. dollars. If the U.S. dollar market price is RM3.50 per dollar, then we must submit RM3.50 to get USD1.00.
There is no difference trading with foreign currency and other goods, namely the exchange activity, in which the owner of the goods delivered the goods to the buyer; the buyer will then submit the money as the trade of goods was.
If in the market, the price of one chicken is RM10, then we must give RM10 to get the chicken. Now, in the forex market, we also must give some ringgit to buy for U.S. dollars. If the U.S. dollar market price is RM3.50 per dollar, then we must submit RM3.50 to get USD1.00.
No comments:
Post a Comment