What is the Forex Market?
The foreign exchange market is the market on which currencies are traded. Currencies are important to most people around the world, whether they are aware of it or not because currencies need to be exchanged to conduct foreign trade and business. If you live in the USA and want to buy cheese from France, either you or the company from which you buy the cheese must pay the French cheese in euros (EUR). This means that the US importer must exchange the equivalent of US dollars (USD) for euros (EUR). The same applies to travel. A French tourist in Egypt cannot pay in euros to see the pyramids, because this is not the locally accepted currency. Therefore, the tourist must exchange the euro at the current exchange rate for the local currency, in this case, the Egyptian pound.
A trading system is more than just a rule or rulebook of when a trade is started and when it is discontinued. It is a comprehensive strategy that takes into account six very important factors, not least your own personality. In this article, we will discuss the general approach to creating a rules-based trading system. (For more information, see our Guide to Trading Systems).
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