What is Forex?
You may have noticed that the value of coins goes up and down every day. What most people do not realize is that there is a currency market, or ‘Forex’ for the short term, where you can potentially benefit from the movement of this currency. The most famous example is George Soros, who earns a billion dollars a day by exchanging coins. Keep in mind, however, that currency trading involves significant risks and people can lose most of their investment. One of the best things about currency trading right now is that you no longer have to be a great money manager to trade with this market; Traders and investors like you and I can trade with this market.
Forex in a few words
The Forex market is the largest financial market on Earth. Daily transaction volume averaged more than $ 3.2 billion. Compare that with the New York Stock Exchange, which only has a daily average trading volume of $ 55 billion. In fact, if you include all the shares and futures markets of the world together, your combined trading volume will only be equivalent to one quartet of the Forex market. Why size is important? Because there are so many buyers and sellers, the transaction price remains low. If you are wondering how to change the Forex market is different from stock trading, here are some important benefits.
Many companies do not charge commissions; pay only for supply and differential demand.
There’s a 24-hour negotiation: you dictate when to trade and how to trade.
You can negotiate with leverage, but this can increase the potential for profit and loss.
You can concentrate on choosing between a few coins instead of 5000 shares.
You can access Forex, you do not need much money to get started.
How is forex market negotiated?
A practical exchange mechanism is synonymous with other markets. The only difference is that you buy one currency and sell the other at the same time. That’s why currencies are quoted in pairs, such as EUR / USD or USD / JPY. The exchange rate is the purchase price between the two currencies.
Finally, it can not be emphasized enough that currency exchange with margins carries a high level of risk and may not be appropriate for everyone. This is the important thing that before you decided trading, you should carefully consider your investment objectives, your level of experience and your appetite for risk. Remember, you could lose some or all of your initial investment, which means you should not invest money that you can not lose. If you have any questions, we encourage you to seek advice from an independent financial advisor.