10 — THE WORLD NEEDED CURRENCIES

Now imagine international trade.

A company in Britain wants to buy something from the United States.

The British company has:

GBP

The American seller wants:

USD

So someone needs to exchange one currency for another.

This is the basic idea behind the foreign exchange market — Forex.

Forex is therefore not simply a market created for retail traders.

It exists because the global economy needs currencies to be exchanged.