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The foreign exchange market is the " place" where currencies are traded. Firstly what we do.
Types of forex transactions. What is Forex Trading Foreign exchange popularly known as ' Forex' is the trade of a single currency for another at a decided trade price on the over- the- counter ( OTC) marketplace. And yes, its FREE. A liquid market environment like forex enables huge trading volumes to happen with very little effect on price price action.
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Here, the currencies are exchanged over a two- day period, which means no contract is signed between the countries. Swap transactions are easily the most normal and common of the multiple ways to do transactions on the forex market.
Swap transactions are also forward transactions, but they do not happen as a trade through the forex market itself. A swap transaction can be confusing at first, two investors agree to change currencies for a certain amount of time.
There are four main types of forex traders: Scalpers hold onto for a few seconds to a few minutes at the most.