Your buddy is planning a trip to England; his salary is likewise in rubles, and the national currency in England is the pound sterling.
What will your pal do?
Of course, he'll go to a currency exchange to convert his hard-earned rubles into British pounds.
Your mum planned to go to Norway to see a friend. What is the current Norwegian currency? The Norwegian Krone Mom's pension is in Russian rubles...
Mom's behavior is predictable: she will travel to an exchange office to exchange her hard-earned rubles for Norwegian krone.
However, there was no crown at this exchange office since they did not deliver for some reason.
Then your mother was offered to purchase American cash - dollars rather than Norwegian kroner. Mom is perplexed: "I have bucks, but I don't want to travel to America for the promenade, but to my buddy in Norway!" And they explain to her: It's nothing - you'll exchange your dollars for Norwegian krone at the exchange office in Norway and enjoy life much more...
And, although your uncle did not travel anywhere he did not plan to, he has additional money.
So, my uncle predicted that the Swiss franc would rise against the ruble, so he went to the exchange office and simply exchanged Swiss francs for rubles, hoping that the rate would rise and his ruble savings would rise as well. Uncle, in other words, opted to speculate on the currency differential.
This is Forex - a foreign exchange office.
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