> How does stock exchange work?

How does stock exchange work?

Posted at: 2014-12-05 
The buying and selling of currencies is not on a stock exchange, but is called FOREX, short for Foreign Exchange. A stock exchange is where companies list stocks, which are parts of their company, for sale to raise equity for investments, etc. For example, if X Company has 100 stocks for sale and you buy 1 share, you own 1% of the company and in theory will get 1% of the company's profits. Usually, the number of shares go in the hundreds of thousands. You buy stocks low, and sell high. You profit from the difference, minus any fees. Forex is buying different currencies, hoping they grow or decrease in value. It is most often leveraged, some forex brokers offer 1:1000 leverage, so every $1 you invest has $1000 purchasing power of currencies. If the currency goes from 1.10 to 1.11, you would make $11 from that $1 investment. Stocks and forex is very risky if you do not have proper experience. I hope this helps!

Pets1001 gave u a great answer but to elaborate a little on currency trading its really not for the average investor. The Forex is a decentralized market where large international banks tend to do most of the trading. National central banks will trade currencies to try to control money supply, inflation and interest rates. Currencies move in pips, not dollars and cents.

hello guys ..i want to know how the stock exchange works anfld how do people make so much money in stock exchange markets? is it just the buying and selling of currencies?..also i dont understand how people make money from buying and selling currencies

can someone explain how it works

thanks