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What Is Forex?

The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business.

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If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros.

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Forex is a Foreign Exchange that means different currencies trading. Nowadays anyone can try to buy and sell at Forex in order to make some profit out of a deal. Price difference of the same currency pair may be different within few days and even within the single day. This price difference when you purchase it and later sell at the best price turns into your profit.

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