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What is Forex ?
What is Forex ?
It is the international currency market where money is being bought and
sold.
FOREX - the foreign exchange market or international currency
market where one currency is traded for another. It is one
of the
largest markets in the world.
What does this mean?
If you the investor had bought 1000 euros for $1085.70 U.S. dollars.
The Forex rate then changes to 1.2083 you then sell your 1000 euros and
you would have made a profit of $122.60.
So that would mean you would have $122.60 US dollars more than you
started with.
Who uses Forex ?
Large Multinational Companies who pay wages and other expenses in
different countries.
Some people use this market just to exchange foreign currency for their
own use.
The largest part of the market is made up of currency traders.
These traders speculate the movements in the foreign exchange market in
the exchange rates, which is like speculating on the movement of the
stock prices on the stock exchange.
Forex traders will try to take advantage of even small fluctuations in
exchange rates.
When is the international currency market open?
The Forex market operates 24 hours per day throughout the week
(Monday-Friday) between individuals with forex brokers, brokers with
banks, and banks with banks.
If the European session is ended the Asian session or US session will
start, so all world currencies can be continually in trade. Traders can
react to news when it breaks, rather than waiting for the market to
open, as is the case with most other markets.
Unlike stocks and futures exchange, foreign exchange is indeed an
interbank, over-the-counter market which means there is no single
collective exchange for a specific currency pair.
Individual currency speculators can work during the day and trade in
the evenings, taking advantage of the market's 24 hours long trading
day.
When should I Trade ?
When trading currencies, trade only when you expect the currency you
are buying to increase in value relative to the currency you are
selling.
If the currency you are buying does increase in value, you must sell
back the other currency in order to lock in a profit.
It is estimated that anywhere from 70%-90% of the FX market is
speculative.
This means the person or institution that bought or sold the currency
has no plan to actually take delivery of the currency, they
were speculating on the movement of that particular currency.
The main attraction of currency dealing to private investors for
short-term Forex trading are:
- 24-hour trading, 5 days a
week with non-stop access to global Forex dealers.
- An enormous fluid market
making it easy to trade most currencies.
- unpredictable markets
offering profit opportunities.
- Standard instruments for
controlling risk exposure.
- The ability to profit in
rising or falling markets.
- Leveraged trading with low
margin requirements.
- Many options for zero
commission trading.
I hope I have answered some of your Questions to What is Forex ?
There are many products on the market to help you. I have reviewed 2
different forex products.
One is an Fap Turbo Forex Robot a
Forex Software.
If you would like to read my review click here and Go to Fap Turbo
Forex Robot review from What is Forex ?
What is Fap Turbo
Forex Robot
And the other is Bird Watching in Lion Country a
Forex Training Course.
Go to Bird Watching in Lion Country review from What is Forex ?
Forex Forum
Forex advice
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