The operational principle of the market is quite simple. Forex is a global virtual space for trades. Market participants are national and commercial banks, insurance companies, investment funds, brokerage firms and private investors acting as sellers or buyers of various currencies.
Trading in the market continues 7 days a week 24 hours a day, excluding holidays. During trading, the degree of supply and demand is constantly changing, due to this, the value of currencies also changes. The change in the price of a particular currency depends on the amount of other currencies offered for it.
For example, a transaction for the sale of 1 euro for 1.1769 dollars has just been completed, and in a second there will be a new transaction for the sale of 1 euro for 1.1767 dollars, this means that for a second the euro rate has decreased by 2 pips. This price change is reflected in the fourth digit of the quote after the decimal point.
