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Trading money in the global markets can be
great way to make more of it, it can also be a lesson in how to lose
money quickly. More than $1 trillion is traded every day on the
foreign currency exchange (Forex), and yet no centralized
headquarters or formal regulatory body exists for this form of
trade. Foreign currency exchange is regulated through a patchwork of
international agreements between countries, most of which have some
type of regulatory agency that controls what goes on within their
respective borders. Thus, the foreign currency exchange actually is
a worldwide network of traders who are connected by telephone and
computer screens.
Although more international policing
of money trading has occurred in recent years, authorities have had
some successes exposing scams and frauds that victimize traders,
especially newer ones. So if you want to try this wild world of
trading, you need to be wary and not depend entirely on experts.
Sure, experts can help you in explaining the working of foreign
exchange markets and how the language of the Forex and its risks are
unique, but you need a lot more training before you even consider
entering this extremely risky trading arena.
If you
have ever traveled outside the United States, you have probably
traded in a foreign currency. Every time you travel outside your
home country, you have to exchange your country's currency for the
currency used in the country you are visiting. If you are a US
citizen shopping in England and you see a sweater that you want for
100 pounds (the pound is the name of the basic unit of currency in
Great Britain), you would need to know the exchange rate. And that
is the way foreign currency exchange is used by the average shopper,
but foreign currency traders trade much larger sums of money
thousands of times a day.
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