what is traded in forex ??
It,s simple answer is MONEY!!...
because you can,t buying anything physical , forex trading can be too confusing.....
suppose of buying a currency as buying a share in a particular country , some like buying stokes of a company.
Then the price of currency is usually a direct reflection of market opinion on the currency and future health of it,s respective economy.
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In forex trading , when you buy , say, united state dollar , you are basically buying a share in the US ....
You are gambling that the united state economy is doing well , and will even get better as time goes , once you sell those "shares" back to the market , hopefully , you will end up with a profit..
IN GENERAL , THE EXCHANGE RATE OF CURRENCY vs OTHER CURREICIES IS A REFLECTION OF THE CONDITION OF THAT COUNTRY'S ECONOMY , COMPARED TO OTHER COUNTRIES ECONOMIES.....
FOREX = FOREIGN + EXCHANGE ( combition of two words ) like NYLON.......