Forex stands for Foreign Exchange. Forex is the commercial center where currencies of different nations are traded. The forex market is the biggest, most liquid market on the planet, with trillions of dollars being traded everyday.
There is no centralized area for forex trades, rather the forex market is an electronic system of banks, intermediaries, establishments, as well as individual traders.
Numerous entities, from financial establishments to individual traders, have currency needs, and may likewise guess on the heading of a specific pair of currencies movement.
They present their requests on purchase and sell of currencies on the network so they can have an interaction with other currency orders from other parties.
The forex advertise is open 24 hours per day, five days every week, with the exception of occasional holidays. Currencies may in any case exchange on a holiday if at least the nation/worldwide market is open.
Lots are used to trade forex market currencies. There are three types of lots, micro, mini and standard lots.
A micro lot is worth 1000 of a particular currency, a mini lot is worth 10,000, and a standard lot is worth 100,000.
This is than not similar to the situation where you go to a bank and want $450 exchanged for your travel trip.