- Mexican peso
- American dollar
- Canadian dollar
- Euros, handled in the European Union
- Swiss francs
- British Pounds, UK
- Rubles, currency of Russia
- Rupees, handled in India and other Asian countries
- Soles, currency of Peru
- Reais, currency of Brazil
- Yen, currency of Japan
- Yuan, Chinese currency
What are forex for?
Forex are used to increase and invest our monetary capital , buying our own currencies or those of other countries. Our purchases will be made trying to speculate or comment on the monetary variations found in the markets and trying to anticipate the political-social reactions that will alter the price of currencies.
Thanks to fluctuations in the value of currencies, we can invest our passive capital, and it can continue to be produced alternately in short-term investments within banking institutions that accept foreign currencies for this, and that also allow the withdrawal of currencies in any time of the investment.
There are users who, knowing what forex are for, are dedicated to looking for other interested investors , and speculation in the currency market for them. This third-party service allows these users to obtain higher profits by investing other capital within the same account.
These investments are not made in the brokerage house , precisely because there is no institution that protects these transactions that are called “OTC” or “Over The Counter”, a term related to “Not having an institutional building, room or floor (as they have the banks).
In short, they serve to:
- Invest a capital that you have and make it generate profits
- Exchange currencies according to the value they have, to obtain a margin of them
- Make estimates of how the value of currencies will fluctuate
- Have more freedom when investing in other currencies, without depending on a bank
- Have control of how much of our currencies is bought and sold in the market
How do they work?
Forex platforms offer users information on the value of currencies over time, in the form of graphs. These graphs, which change second by second, live, are often difficult to understand and interpret, but for those who master them it is a great source of data that will help make the best and most profitable use of forex .
In the forex the mechanics is simple: currencies are acquired that at that moment are devalued, that is to say, that have a value that is going down ; These currencies are kept in a bank, either in cash or in some investment.
The intention of keeping these devalued currencies in storage is to, at a convenient time, when their value has risen, sell them and make a profit from them .
The graphs that show the value of currencies over time are always changing , as already mentioned, and that is why many Forex users have their computers turned on for many hours, waiting for an opportune moment to buy or sell. your currencies.
The information that the charts show is precisely the state of the currency market.