Foreign Exchange Market Essay Example | Topics and Well Written Essays - 500 words

Foreign Exchange Market - Essay ExampleSo the more dollar exchanged the great the value of the peso has. The value of each money is not really fixed it may start with a bigger value at the fount of the day and may decrease as the day ends.The market of foreign exchange however can be analyzed in terms of yield and demand. So as mentioned in the first paragraph, the more of that currency is supplied to a ground, the lower its value. So for example, when someone buys a product of a different country in their locality doesnt really deal with foreign exchange. Its the person who bought the currency of that certain country to buy that product and sell that product to their locality. So if an American buys a Japanese doll, its the person who is selling that doll in their locality that bought yen who dealt with foreign exchange market because he will be purchasing that doll in yen and not in their own currency. Thats why the more investors in your country are, with that certain curren cy, the lower the value of their currency is in your own country.So what are the basics in foreign exchange market First is the forex trading or what we also call as currency trading is always done in pairs.