In the indices market , we deal with currency. Another name for the indices market is Foreign Exchange Market. It is virtual market. Basically, it involves selling one currency in order to buy another. In this, traders are not going to buy anything in physical form. The In this market is consists of banks, commercial companies, central banks, investment management firms, hedge funds, and retail indices brokers and investors.
Here’s an analogy – buying a currency is like buying a share in a company. The price of a currency is generally a direct reflection of the market’s opinion on the current and future health of its respective economy. In this trading when you buy say US dollar so basically you are buying a “share” in the economy of the US. So you are betting that if the US economy is going well, and will even get better as time goes. You sell those “shares” back to the market, Hopefully, you will end up with the profits. The exchange rate of currency with other currencies is the mirror of the condition of that country’s economy comparatively other country’s economy.
This market is the largest financial market in the world. In indices market, a trader traded with the help of a broker or dealer. Currencies are always traded in pairs They are quoted in relation to another currency. Visit Here
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