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FOREX trading is a financial trading that involves different types of products such as foreign currencies, stocks, and the like. In such type of financial trading, the value of a country’s currency is determined depending on its current exchange rate vis-a-vis another country’s currency to which it is about to be exchanged into. Among the common traders in a FOREX market are large businesses, banks, and other financial institutions. Countries, through their respective governments, may also invest in FOREX. They may invest money in another country through a bank that serves as the broker.
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