In the foreign centre, the currency is different as a currency that is current in a particular country for buying and selling of products and services cannot be used to buy or sell at a foreign country. The need for foreign exchange came into picture.For buying the necessities of life, Now in India rupee is the currency. Once cannot pay for imports from USA with this rupee on hand, as there is the $ currency and the US exporter will not accept Indian Rupee. Payment is acceptable only in $ terms by the US dollar. Like a commodity, an Indian importer purchases $ currency and pay for imports. Indian rupee is purchased by the US imported from India and pays to the Indian exporter.
How the payments are made?
The Central Bank of the country are the authority to sell and buy foreign currency known as Foreign Exchange (FOREX). Both Government and private banks in all countries of the world are done through the Authorized Foreign Exchange dealer.
How commodity is traded online
We buy the capital stock of companies of our choice, hold it for some time and sell it when the prices go up in case of share business. We buy Foreign Exchange in Forex trading of our choice depending upon the market trend and earn a profit. Buying or selling of shares when wrong decisions are taken results in loss.In Forex trading, same is applicable.
Who can trade?
Once it was considered the choice of business of big business houses. Now u can trade with a minimum investment say $ 100 with the foreign currency with the advent of internet. By paying your country’s currency to the Central Bank of the country through the authorized Forex dealer bank, you can create your Trading account online by paying $ 100.You can sell and buy Forex or on your own, you can trade on consultation with expert advisers on finance engaged in the field. You have the option to buy or sell depending upon the market trend and decide the buying or selling, every day the Forex prices i.e. selling and buying rate are quoted in the internet, newspapers etc. Like share investments, the online trading is a retail business which can be done by individuals.
Good understanding about the procedures, analytical ability to assess the finance and international trade and commerce is easy to transact. It requires also some experience.
Know more about easy-forex and online forex trading.