What Is Forex Trading? How It Determines the Dollar's Value

 Forex, or foreign exchange, trading is an international market for buying and selling currencies. It is similar to the stock exchange where you trade shares of a company. Like the stock market, you don't take possession of the money. It is a way to profit from the changing value of these currencies based on their exchange rates. In fact, the foreign exchange market is what sets the value of floating exchange rates.

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