What is forex trading? Increible

Forex, or foreign exchange, While a lot of foreign exchange is done for practical purposes, the vast majority of currency conversion is undertaken with the aim of earning a profit. The amount of currency converted every day can make price movements of some currencies extremely volatile. It is this volatility that can make forex so attractive to traders: bringing about a greater chance of high profits, while also increasing the risk. can be explained as a network of buyers and sellers, who transfer currency between each other at an agreed price. It is the means by which individuals, companies and central banks convert one currency into another – if you have ever travelled abroad, then it is likely you have made a forex transaction.

Forex Central Banks

Forex Central BanksCentral banks are major participants in the foreign exchange market, although the reasons forthey are not speculative. The main objective of central banks is to control and regulateamount of money offered in a nation to achieve its economic objectives. A bankCentral may intervene in the currency market for the following reasons:· To gain stability in the exchange rate and prices· To protect certain levels of the exchange rate and inflation· When the main economic objectives are to be achieved.Some central banks are more conservative than others, some regularly involved(As the Bank of Japan *) and not so often as the Federal Reserve (bankCentral America).The major central banks are:

1. Federal Reserve US
2. The Bank of Japan
3. The Bank of England
4. The European Central Bank
5. The Central Bank of Canada
6. The Swiss National Bank

* The Japanese central bank used to intervene much in the past, but not recentlythere has been much intervention.