Forex in the UK - GBP, USD and more
Hello and Welcome to the first Foreighn Exchange Website in the UK
Our porpose is to give you a review of the status of UK national currency, the Great British Pound (GPB) and how and why it behaves the way it is in comparison to the American USD.
For most people the behavior of currencies and their rates is a complete mystery. We aim to clear some of that dust and provide you with simple review of the currency world.
First lets have a look what is the most popular currency in the world:
You can see that the GPB is as popular as the Euro (the currency of the European Union), and both of them are left far behind America's currencies.
Why do Currency Value tend to fluctuate?
First of all, beacuse the relative value of its different valuables fluctuate frequently.
You might have heard it once or twice in your life: a matter of supply and demand. The currency always stays in-tact in relation to itself. But it also changes in relation to others, ALL THE TIME.
If you have a fixed amount of currency (of any kind, money, tomatos, weapons) and increase its demand - its value would increase immedietly.
Reduce the demand and the value would decrease respectively.
To conclude - 'Value' means the relation between different quantities.
But what changes the demand? Is there 'more' demand for USD, GBP or other currencies? This is where it gets a bit more complicated. Monetary Currencies (which aren't really exists) are pegged with the value of some product. (Imaginary) example - the value of GBP is pegged with the value of 1 galone of oil. When oil is running out, it's value is going up. Which means the value of GBP goes up and it turn means that the value of USD, in relation to the GPB would go down. There are of course 1000s of elements which effects the value of the money. Political changes, wars, sport events, unemployment and many other factors impact the value of a currency. No matter what you do, the currency will fluctuate. The only way to stop currency from fluctuate is to stop earth from spinning.
So how do people trade Forex and make money out of it?
You can't make money from Foreign Money Exchange. Ok, you can, but it is just like gambling. NO ONE can predict how currency would fluctuate. It's like predicting the future. If you can do that - you have much better things to do than trading forex :) There are many Forex Trading houses, which offer you supposedly tools