Physical Forex means exchanging one currency for another in person — by going to a money exchange shop or bank. This is different from online trading because you are handling real cash.
How Does Physical Forex Work?
Let’s say you have US Dollars (USD) in cash and you want to exchange them for Euros (EUR) — maybe for travel or because you believe the Euro will become stronger soon.
Example:
- You go to a money changer.
- You give $1 USD and get €2 EUR in return.
- Later, the value of the USD drops, and now 1 EUR = 1 USD.
- You go back to the money changer.
- You give back €1 EUR and get $1 USD.
Now, you’ve earned €1 EUR from this currency exchange — all done physically, hand-to-hand.
Why is it Called Physical Forex?
It’s called Physical Forex because:
Everything happens face-to-face.
You exchange real, hard cash.
No online platform is involved.
You interact directly with a money changer or currency dealer.
