Forex is the acronym for Foreign Exchange. Simply put, Forex permits the exchange of currency from one form to another. Foreign exchange booths are located at the airports and various parts of South Africa where a foreigner can change his home currency to the Rand so that he can have the South African legal tender for easy transactions.
Forex trading has to do with exchanging one currency for another and making a profit from the difference. It involves buying and selling of one currency against another. Forex traders buy a currency when it is at its lowest value and sells that currency when it has reached its highest possible value. As a result, they can make a profit from the process. The process may sound so simple, but a trader requires a lot of knowledge to make a consistent profit from Forex trading.
How it operates
You do not have to travel from South Africa to another country to exchange or trade in currencies; you can do it online and in the comfort of your home, provided you have a computer that is connected to the internet.
The recent advancement in technology, especially the mobile technology industry, makes it possible for South Africans and everyone else to trade Forex on their mobile devices, like tablets and Smartphone. All you need to do is to download the Forex trading platform of your preferred Forex broker to your desktop, laptop or mobile device; the Forex broker is the middleman that connects you to the Forex trading world.
The various currencies being traded
You can trade currencies, metals, and commodities in the Forex market. Various currencies are being traded in the Forex market, and the most common ones among them are highlighted below:
- United States Dollars (USD)
- European Union Euro (EUR)
- Japanese Yen (JPY)
- United Kingdom Pound Sterling (GBP)
- Switzerland Swiss Franc (CHF)
- Canadian Dollars (CAD)
- New Zealand Dollar (NZD)
- Australian Dollar (AUD)
- South African Rand (ZAR)
- Iranian Rial (IRR)
- Indian Rupee (INR)
- Chilean Peso (CLP)
- Mexican Peso (MXN)
- Brazilian Real (BRL)
- Renminbi or Chinese Yuan (CNY)
- Russian Ruble (RUB)
The above information is purposed to introduce you to the basics of Forex trading. As hinted earlier, you need a lot of knowledge before you can profit from Forex trading. You can partner with professional traders to learn the rope or consult several free sources of information on the internet to get started on your journey to consistent profit in Forex trading.