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What is Capitalism & Communism? Understanding Terms

5 min read

Forex is the shorthand term for foreign exchange, and it refers to the global market where currencies from different countries are traded against one another. Capitalism is an economic system where the production and distribution of goods and services is mainly based on the private ownership of capital, meaning that free markets determine prices, production levels, and various other economic factors. Communism is an economic system based on collective ownership of the means of production, where resources are shared, wealth is distributed equally, and price fluctuation is abolished. Forex trading allows people to speculate on the price movements of currencies, enabling them to take advantage of fluctuations in the exchange rate to hopefully reap a financial reward.