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- forex trading means trading Foreign Exchange, hence the name. It is a process of exchanging and trading currencies, mostly with the aim of earning money or profits through it. For the exchange to take place, there must be a currency to be changed, that is called the base currency; and the target currency wished to be changed to, called the quote currency. As such, there is no such concept such as "absolute value" when it comes to currency trading. Rather, prices are determined by its relative value by setting the market price of one currency if paid for with another. The exchange rate is usually set in agreement between two parties, usually financial regulatory institutions or the governing bodies or a country/region. As such, in many places running under market mechanism, the exchange rate for currencies is determined by price movements after being set. Рязань, Russian Federation
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