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Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. According to the 2016 triennial report from the Bank for International Settlements (a global bank for national central banks), the average volume of money traded is more than $5.1 trillion in a day.

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Online trading has given anyone who has a computer, Tablet or smartphone, some extra money to open an account and a reasonably good financial history the ability to invest in the market. You don’t have to have a personal broker or a disposable fortune to do it, and most analysts agree that average people trading stock, Forex and Cryptos are no longer a sign of impending doom.

­The market has become more accessible, but that doesn’t mean you should take online trading lightly. There are different types of online trading accounts, you need to take care and cautious as well to choose an online brokerage, make trades and protect yourself from fraud.

When a business makes a profit, it can share that money with its stockholders by issuing a dividend. A business can also save its profit or re-invest it by making improvements to the business or hiring new people. Stocks that issue frequent dividends are income stocks. Stocks in companies that re-invest their profits are growth stocks.

Brokers buy and sell stocks through an exchange, charging a commission to do so. A broker is simply a person who is licensed to trade stocks through the exchange. A broker can be on the trading floor or can make trades by phone or electronically.

An exchange is like a warehouse in which people buy and sell stocks. A person or computer must match each buy order to a sell order, and vice versa. Some exchanges work like auctions on an actual trading floor, and others match buyers to sellers electronically.

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