The word Forex is basically the combination of two words namely the “foreign” and “exchange”. This is normally a place where currencies are exchanged or traded for. Now it might be a question to most of us that how is currency important to people and why there is a need for a business in this sector. The real requirement of currency exchange services is because we cannot travel and explore the pyramids of Giza in Egypt with Indian rupees. There is this huge exchange of currencies of different nation that builds a linking bridge between all the trade and culture of different nations.
In finance, a trade is an exchange of a security (stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument) for "cash", typically a short-dated promise to pay in the currency of the country where the 'exchange' is located. The price at which a financial instrument is traded, is determined by the supply and demand for that financial instrument.