How Forex trading works?
The forex market can seem a very complicated market at the begining if you don't have a qualified trader to take you through the training process.
At first, you might struggle with understanding the signals in the forex market.
Forex is the foreign currency exchange market.
Unlike most other financial assets, the forex market depends on a lot on the economic situation and indicators of the currencies being traded.
Companies trade stocks (sell shares to investors), and for a country, their currency is the stock to sell to other countries. If a country's economy is doing well enough, their money will do as well in the forex market.
The Central Banks of most countries are the primary policymakers, and they control the money supply in the economy. The decisions they make influence the prices in the forex market and how trades are conducted.
A typical example will be the control of interest rates by the central banks. Since the US dollar, euro, British pound and Japanese yen are the most traded currencies in the world, the Federal Reserve Bank, European Central Bank, Bank of England and Bank of Japan are respectively the most prominent policymakers in the forex market.