If each country the entire world over-all had the same currency, say the United States Dollar or the British Pound, when you traveled, you would never need to exchange your currency. You wouldn’t need to concern yourself with a trade at all because if every country used universal money, it wouldn’t matter.
However the world’s currency differs among countries, which gives reason for the Foreign Exchange (or the Forex as it’s more commonly referred to). The Forex is where all the currency trading is handled. 꽁머니 So how exactly does the Forex can be found in handy when you’re dealing in any kind of exchange of one country’s money for another’s? The Forex is employed to trade one currency for another.
Without it, if you turned your entire United States Dollars into say, Japanese Yen, but came back to the United States with very same of $1,000 tied up in yen, the yen will be worthless for your requirements here. You couldn’t exchange that yen at any fast food restaurant. You couldn’t look for clothes with it, you couldn’t rent a motel room.
Without currency exchange facilitated through the Forex, you could find yourself hungry and naked and with no destination for a sleep. Okay, that’s a drastic example, but money really may be the oil that makes the entire world go around.The Forex is the machine that the oil is funneled through.
One cannot work with no other. If there is no Forex, travel out of and to the United States could very well ground to a halt. Can you imagine a world without the capability to exchange money? With no Forex, that imagined world would become very real indeed. Exchange with the Forex isn’t restricted to just small time investors, traders who operate out of their house and it’s not just restricted to well heeled investors who make millions. The Forex is for anyone with a need to exchange currency.
The Forex can be used by multi-million dollar corporations. If your company within the United States does business beyond your US and pays a foreign company for a product or service, there has to be a means for that currency to exchange from United States Dollars to whatever currency is utilized in the foreign country. As long as there is money that needs a trade in one country to some other in order to be utilized, there will be a need for the Forex.