The short answer for is: When "money" needs to be converted from one nation's currency to another, there is a world wide market that does this. This is actually the main reason the currency trading market even exists.

The currency trading has many names. It may be referred to as; but not limited to, FX trading, money trading, day trading, currency trading, or forex trading. In this market, currency is traded for necessity, only a mere 20% of the time. The other 80% is done by businesses, and even governments, for profit.

To profit in currency trading, one must learn at minimum - the very basics of what currency trading is, (covered above). Then one would have to understand which currencies are traded, maybe even, while, and how this is done.

A few things must be duely noted about the currency trading market.

The Difference Between Currency Trading, and the Stock Exchange

• basically, there are not as many rules - no rules against "insider trading"
• currency trading does not happen on a regulated exchange (like the NYSE, or CME)
• trades are not guaranteed by a "clearing house" - no panel to handle disputes
• business deals are confirmed with a "virtual handshake" of sorts

Uhh...NOTHING. People do not physical take hold of anything when it comes to currency trading. All of the currency trading is done using a computer. All of the loses, and gains are calculated there on a computer, and are left there as a record, in the currency traders account.

IF YOU WANT TO MAKE MONEY WITH CURRENCY TRADING...then you need to understand how. First of all, as with the "stock exchange", you may hire someone to do the trading for you. When someone is trading for you, as NOT the case with trading stock, a "currency trading DEALER" will not earn what we called a "commission", but he will earn what is called a "bid ask spread." Very simply, this is defined as the difference between the highest price a bidder is willing to pay, and the lowest price the seller is willing to sell for.

Example:

• A bidder's higest bid is $50, and the seller's lowest price is $55.
• The "bid ask spread", will be $5.
• The Dealer will make $5.

If you would like to be your own dealer, you may do so. This is being done more frequently these days because of the ease that the internet brings us. Many people today are using what is called a "forex trading ROBOT" Also known as, FX robot, currency trading robot, money trading robot, or even day trading robot. There is SO MUCH information, and proof of how these robots work. I would advise one to go read up on this phenominal invention here: Currency Trading