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+--- Thread: What is the exchange market (Forex)? (/showthread.php?tid=31136)
What is the exchange market (Forex)? - Grigio - Jan 30th, 2022
In the foreign exchange market (Forex), traders can exchange one currency for another. In essence, the foreign exchange market determines the exchange rates of currencies.
Currencies are often considered "safe haven" assets. Even in the case of fiat-backed stablecoins, the very name indicates that the asset should be protected from volatility. But while this is true to some extent, currencies can also be subject to significant market fluctuations. Why? Because the value of currencies is also determined by supply and demand. In addition, it may be affected by inflation, as well as other market forces related to global trade and investment, and geopolitical factors.
How does the foreign exchange market work? Investment banks, central banks, commercial companies, investment firms, hedge funds and retail traders trade currency pairs. The foreign exchange market also allows you to convert currency in international trade settlements.
Currency traders usually use day trading strategies, such as scalping with leverage, to multiply their income. We will tell you more about this later.
The foreign exchange market is one of the main components of the modern global economy. In fact, it is the largest and most liquid financial market in the world.
What are leveraged tokens?
Leveraged tokens are trading assets that allow you to speculate on the price of a cryptocurrency with leverage, but without the usual requirements for positions with leverage. This means that there is no need to worry about margin, collateral, financing and liquidation.
Leveraged tokens are an innovative financial product that appeared thanks to the blockchain. For the first time, such tokens were presented on the FTX derivatives exchange, but then alternative implementations appeared. Nevertheless, their main idea is the same: to tokenize open positions with leverage. What does it mean?
Leveraged tokens represent open perpetual futures positions in tokenized form. Remember we said it was possible to create derivatives of derivatives? Leveraged tokens are a good example, since their value is based on futures positions, which are also derivatives.
Leveraged tokens are a great way to simply bet on a cryptocurrency with leverage.
RE: What is the exchange market (Forex)? - linlee - Feb 10th, 2022
right? Thanks for your information!
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