Forex is a shortened term by the industry specialists and the general public for the actual name of Foreign Currency Exchange. Exchanging of foreign currency with local currency is a simple transaction in Forex. And the Central Banks of the two currency who are actually owners of the currency that you own do the transaction for your transaction.
Want Some Real-Life Examples?
- Imagine that you are going to Japan and you are in the USA now and when you go to Japan you might be exchanging US dollars to Japanese Yen. With knowing or without knowing you are making a Forex transaction.
- Imagine that you are purchasing a product from eBay and you are living in India, You are making a Forex transaction to the seller unless your card is the base currency of what seller accept.
- Imagine you are going to another country and making a credit card payment to a coffee that your buying from a small cafe, and you are doing a Forex transaction there as well.
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