How does the Foreign Exchange market work?

The Forex or Foreign Exchange market is a global and decentralised market in which currencies are traded. Núria Rambla, CEO Executive Assistant at 11Onze, explains how the market that moves the largest volume of investments works.

 

Forex, from the union of the words Foreign and Exchange, is also known as FX or Foreign Exchange Market and is the largest financial market in the world. It is a global market for currency trading where the world’s major currencies can be traded 24 hours a day, Monday to Friday. But as Rambla points out, “we should not confuse the foreign exchange market with the stock market, they are different”.

It is a highly liquid market where many players and investors from all over the world operate, such as banks, financial institutions and companies that manage investment funds. Therefore, it represents a great opportunity for all types of investors, which is reflected in the volume of investment, “2.9 trillion dollars and 1.1 trillion euros are traded every day“, explains Rambla.

Trading with the exchange rate between two currencies

The aim of investors is to profit from the price difference between the different currencies listed on the market. It should be borne in mind that the value of a currency can vary depending on many factors. The current economic situation with runaway inflation can play a role in determining demand, but other circumstances can drive a currency’s value up or down.

Investors buy and sell currencies based on their expectation that a currency pair will move up or down from its initial value. In this sense, Rambla points out that the Forex market “allows us to agree on prices and hedge risks, known as options and futures”.

 

If you want to discover the best option to protect your savings, enter Preciosos 11Onze. We will help you buy at the best price the safe-haven asset par excellence: physical gold.

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  1. alicia Coiduras Charlesalicia Coiduras Charles says:
    alicia

    No en tenia n’idea d’aquest tipus d’inversió, es mes que interessant però no em veig en cor de fer-ho jo mateixa
    Gràcies per aquesta informacio

    • Càrol RafalesCàrol Rafales says:
      Càrol

      Cert, Alícia, és interessant, però també és veritat que abans d’introduir-se en aquest món cal informar-se bé.

      1 week ago
  2. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    Molt interesant, i bona eina per poder treure uns rendiments als nostres estalvis.
    Donat q no estic familiaritzat en aquesta operativa, no sé si vosaltres presteu el servei de gestionar l’import q nosaltres decidim invertir en aquesta operativa i quins costos tindria.
    Gràcies!!!!!

  3. Jordi MorenoJordi Moreno says:
    Jordi

    Ostres però això no sabia que ho podiem fer ja des de l’app el canut🤩 agafaré hora a l’11 a casa per a q m’expliquin com es fà. Merci!

    • Càrol RafalesCàrol Rafales says:
      Càrol

      Es podrà fer, Jordi, en un futur proper. Si programes un 11Onze a casa ja t’explicarem en què consisteix.

      1 week ago
  4. Jordi MorenoJordi Moreno says:
    Jordi

    Interessant ferramenta d’intercanvi de valors per a estalviar, em falten coneixements per obtenir beneficis per a estalviar, perqué a la pràctica no sé com funciona, supose que inicialment es parteix d’una compra de cartera de divises amb un import amb una divisa i que després podràs intercambiar de divisa per a després quan pugi la diferencia entre divises retornar-la al compte corrent a la divisa d’origen, no? Per exemple tens 10 €uros q els pases a dolars i al cap d’un mes si ha crescut la diferencia entre divises els tornes a passar a euros i la diferencia entre divises negativa respecte a la divisa d’origen et genera un guany, no?

    • James SeneJames Sene says:
      James

      Correcte Jordi. Simplement que en el cas del compte 11Onze ho fas tot des del mateix compte la compra I la venta igual de fàcil que enviar un correu electronic.🙏🏿

      2 weeks ago

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