What is Forex Trading?
Photo Credit: Investopedia
To put it very simply, foreign exchange (forex) trading is a type of investment where individuals around the world trade currencies to make a profit. They make predictions about the appreciation or depreciation of a currency, and shift funds from one currency to another in order to accumulate wealth. The exact way this works will be better explained through a recent example. Right now (4th August 2022) the Singapore dollar has reached an all time high against the Malaysian ringgit, with 1SGD being able to be exchanged for 3.23MYR.
So let’s say a month ago, you decided to buy 1,000SGD using Malaysian ringgit at 3.16MYR/SGD. Now, a month later, you then change this S$1,000SGD back to MYR at 3.23MYR/SGD. Overall, you’ve made a profit of 70MYR (0.07MYR...
