Currencies are traded in Open Markets, just like we trade stocks, shares, bonds, households and many other things. Economics rule of "Demand" and "Supply" is also applicable here on all the trading. Same the way;
Currency value fluctuates depending on the Demand & Supply rule. Value of an items is directly proportional to the Demand and Supply; same applies on Currencies we trade using FOREX. When demand of a currency falls, the value of currency falls too. and value of currency increases if demand of that vary currency is increased. On the basis of this rule we choose to trade FOREX as its benefits are already describes in another post.
Currency value fluctuates depending on the Demand & Supply rule. Value of an items is directly proportional to the Demand and Supply; same applies on Currencies we trade using FOREX. When demand of a currency falls, the value of currency falls too. and value of currency increases if demand of that vary currency is increased. On the basis of this rule we choose to trade FOREX as its benefits are already describes in another post.
Why Currency values fluctuate???
Reviewed by BARI.0492
on
November 14, 2011
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