Essentials of Foreign Exchange Trading
Chapter One
Introduction to
Foreign Exchange
Trading
After reading this chapter, you will be
able to:
Understand the basic facts and history of the global
foreign exchange market.
Appreciate the characteristics that set forex apart from
other financial markets.
Assess who the real market players are, and how they
may affect currency prices.
Decide whether foreign exchange trading is right
for you.
Know what to expect from this book.
Trading Money to Make Money
Foreign exchange trading is essentially about trading money. There
are several reasons why people and institutions would want to trade
money. The two primary reasons are currency conversion and speculation.
Currency conversion is simply the changing of money from
one currency to another for the primary purpose of purchasing
goods, services, or assets from a foreign country. For an American
company to buy British goods, for example, would necessitate the
conversion of U.S. dollars to British pounds.
This book will focus exclusively on for ... read full excerpt from: Essentials of Foreign Exchange Trading (Essentials Series #44) ebook
