Forex trading is a decentralized digital system of exchanging money. It involves a rigorous process of largely speculating, buying and selling of currencies. This usually occurs five days a week. Just like cryptocurrencies, it basically entails to sell the currency when you see the prices will come down in the future.
Basic Terms in Forex Trade you must know
1. Exchange Rate
In a more simple term this is the worth of a country's currency in terms of another. Simply means that you trade a currency for how much it amounts in another foreign legal tender. You can get more information about foreign exchange broker via https://globex360.co.za/.
2. Base currency
Trading forex involves two currencies at a time. The first to the left is called the base currency. It automatically assumes the place of the higher currency and takes the lead in the trade. It is used to buy the lower money which is usually positioned to the right.
3. Quote currency or counter currency
The second cash symbol positioned to the right is called the quote or counter currency. It represents the lower legal tender in most cases. It is used to sell the base currency which is actually higher in worth. You can get more information about it via various online resources.