Money is a generally accepted medium of exchange to buy and sell goods and services. It commonly takes the form of aissued by the of a country.
When money is in the form of a currency, its physical form is banknotes and coins — this is called "fiat money" as it is usually the legal tender of a country, and must therefore be accepted as a means for payment.
Money can also exist on paper in the form of a bank draft or cheque (a simple written promise to pay the bearer at some future date)., silver or other precious may also be used as money. Indeed, money itself is a commodity that can be traded.
Money is also used as a unit of measurement so that goods and services can beto facilitate trade, the intrinsic value of different items can be compared and accounts can be kept.
Money in trading
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Money is the main medium used in trading. Money in one currency can be traded for money in other country — this is called, or forex. It is one of the most widely traded of all because it is also the most ), with trading taking place globally on a 24-hour basis.
Otherare also traded using money, even if the buyer is trading on or , i.e. using more money than they actually have to make the transaction.
What is money management?
Money management refers to one of the most important concepts in trading. It is a concept that protects your trading capital from losing trades and it is the most important skill for trading.
"Never risk more than 1% of your trading capital in a single trade" is a rule of thumb that, as simple as it is, can already help a new trader to significantly reduce his or her risk.
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What is money supply?
Money supply underpins the economy of a country as it represents the total amount of money in circulation there in the form of currency and bank deposits, which is usually a greater amount. A central bank can increase money supply by producing more currency and releasing it into circulation, or decrease it by withdrawing a proportion of the currency in circulation.
Thus, money supply and the monetary policy of central banks influences theof currencies.
In our forum, you can discuss monetary policy with other traders: