Module 1 Introduction to Forex Market 1.1 What is FOREX ? FOREX ! You might have come across this term in social media, blogs, various news reports, etc., In general, Forex can be termed as "FOREIGN EXCHANGE." Before diving into this topic, let's clarify the common difference between the terms "MONEY" and "CURRENCY." Do you think both are the same? Absolutely not! MONEY can be defined as something that you give in exchange for a product or service of equal value. For example, if you purchase a commodity like rice, you have to give an equivalent value for the rice. In short, something must be given to get something back. Hence, the value given in exchange for any product is commonly known as "MONEY." In fact, money can be considered a common term. The use of gold and currencies can be taken as money. CURRENCY can be defined as a paper recognized by the government system. It's just a paper used as money, with the value determined by the government. For instance, we use Indian Rupees in our country, but in America, Dollars are used. FOREX means the exchange of one country's currency for another country's currency. For example, the conversion of Rupees into Dollars (and vice versa) can be treated as "FOREX." There are many reasons for these conversions (Exchange). Later we discuss about this in detail. 1.1 What is FOREX ? You might have come across this term in social media, blogs, various news reports, etc., In general, Forex can be termed as "FOREIGN EXCHANGE." Before diving into this topic, let's clarify the common difference between the terms "MONEY" and "CURRENCY." Do you think both are the same? Absolutely not! MONEY can be defined as something that you give in exchange for a product or service of equal value. For example, if you purchase a commodity like rice, you have to give an equivalent value for the rice. In short, something must be given to get something back. Hence, the value given in exchange for any product is commonly known as "MONEY." In fact, money can be considered a common term. The use of gold and currencies can be taken as money. CURRENCY can be defined as a paper recognized by the government system. It's just a paper used as money, with the value determined by the government. For instance, we use Indian Rupees in our country, but in America, Dollars are used. FOREX means the exchange of one country's currency for another country's currency. For example, the conversion of Rupees into Dollars (and vice versa) can be treated as "FOREX." There are many reasons for these conversions (Exchange). Later we discuss about this in detail. 1.1 What is FOREX ?
