Forex is a commonly used abbreviation for "foreign exchange", and it is typically used to describe trading in the foreign exchange market by inventors and speculators.
The Forex market is the largest and most liquid financial market in the world. It is the arena in which a nation's currency is exchanged for that of another at a mutually agreed rate. It was created in the 1970's when the international trade transitioned from the fixed to floating exchange rates. Traditionally the Forex market has been the preserve banks and larger financial institutions. However with advances in technology, and the global nature of the market, it is now possible for traders of all levels of experience to take part in online currency trading via a Forex company.
Forex trading also known as "foreign currency trading", offers currency traders huge opportunities to benefit from fluctuations in the currency markets; This can be achieved by opening a Forex trading account with a Forex Broker ("Currency broker") that offers online Forex currency trading. However currency trading also involves significant risk of loss.
With an estimated USD 7 trillion traded each day, the Forex market is larger than the stock and futures markets combined. Unlike, other world markets, the Forex market is a continuous market providing Forex traders with 24-hour market access. Although it's open all the time due to the four different world trading sessions, you should only monitor the market closely during the busiest sessions which are the New York and London sessions. The weekends are market holidays and there is no trading activity going on.
The size of the Forex market may sound huge, but the Forex market functions, unlike other financial markets, is quite simple. Therefore it's easy to learn the basics of foreign exchange ("Forex") markets trading. Currencies are bought and sold for each other at certain rate. If you open a trade by buying the currency when it's low and selling it when it's high, you make a profit on your Forex investment capital, i.e you make money. The only tricky part is to know what moves on the foreign exchange market, how the different factors affect it, and in which direction it will move next. These factors include economic or political events. These need to be factored in when a foreign currency trader decides in the direction in which currencies will move.
GRAPH TRADE FOREX
No comments:
Post a Comment