The author posted a question in Business, Finance
what do currency exchanges do? and got a better answer
Response from
You buy one currency as a commodity and pay with another. For example, in the dollar/ruble pair, we buy dollars for rubles, in which case bucks are goods and rubles are money. In the Forex market one buys currency with the hope of its growth. In other words: you buy 1 buck for 20 rubles, the price changes, and sell 1 buck for 25 rubles. Earned 5 p. There are a bunch of different things to take into account, such as spreads, commissions, currency quotes, but in general, the algorithm is the same. Only they do not operate with 1 buck, but with a much larger amount?
Response from 0[+++++]
buy one currency as a commodity when paying with another. For example, in the dollar/ruble pair, we buy dollars for rubles, in this case, the bucks are goods, and rubles are money. In the Forex market one buys currency with the hope of its growth. In other words: you buy 1 buck for 20 rubles, the price changes, and sell 1 buck for 25 rubles. Earned 5 p. There are a bunch of different things to take into account, such as spreads, commissions, currency quotes, but in general, the algorithm is the same. I would not expect them to trade 1 pound but I would expect them to trade a lot more.
buy one currency as a commodity when paying with another. For example, in the dollar/ruble pair, we buy dollars for rubles, in this case, the bucks are goods, and rubles are money. In the Forex market one buys currency with the hope of its growth. In other words: you buy 1 buck for 20 rubles, the price changes, and sell 1 buck for 25 rubles. Earned 5 p. There are a bunch of different things to take into account, such as spreads, commissions, currency quotes, but in general, the algorithm is the same. I would not expect them to trade 1 pound but I would expect them to trade a lot more.
Response from 0[+++]
They trade in currencies, which is clear from the name:
They trade in currencies, which is clear from the name:
Response from 0[+++++]
If you're very interested, go to some brokerage company, they have free introductory courses.
If you're very interested, go to some brokerage company, they have free introductory courses.