Welcome to the largest cash flow industry in the world; the currency market, also known as FOREX, FX or CURRENCY TRADING. The word forex is derived from FOREIGH EXCHANGE TRADING. In this business, you are involved in buying and selling of currencies online through a FOREX BROKER with the sole aim of profit making. It is therefore just like the stock market but the edge it has over stock market is that the profit margin is higher.
What is forex
Forex is simultaneous buying of one currency and the selling of another. In Forex one currency is traded for another. It is by far the largest financial market in the world, with over $1.9trillon is traded every single day and including between large banks, central banks, currency speculators, multinational corporations, governments, and other financial market brokers or banks. The currencies are traded in pairs, for example EUR/USD or EUR/GBP. A trader takes a long (buy) position in one currency and a simultaneous short (sell) position in the other.
Advantages of Forex over other online currency trading
No commission:- No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the spread.
It is 24 hours a day and 5 days a week:- The Forex market is open 24-hours a day and 5 days a week, from Sunday evening to Friday afternoon EST, with only minor gaps on the weekend, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night. The foreign exchange markets follow the sun around the world, so you can trade late at night or in the morning.
No advertisement needed:-In Forex you don’t need any form of advertisement before you can trade. No Paper advertisement, No Television advertisement, No Radio advertisement is needed both the Buyers and Sellers are always available.
No fixed lot size:- In Forex, you determine your own lot size. This allows traders to participate with accounts as small as $100, even with account smaller than.
Low transaction cost:- The retail transaction cost (the spread) is typically
less than 0.1 percent of your transaction cost under normal market conditions.
Availability of Leverage:- This is the ability to control a large amount of money using little of your own money and borrowing the rest without paying any commission. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
High liquidity:- Because the Forex Market is extremely large in size, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will.
No middlemen:-In Forex the middlemen is eliminated and you are enable to trade directly with the market.
Free practice account:- Forex brokers offer practice accounts for free, These are very valuable resources for traders who would like to improve their trading skills with 'play' money before opening a live trading account.
You can trade Forex anywhere:- In Forex market you don’t have to be in a particular place before you can trade, You can operate from home, work, vacation or anywhere else in the world as long as you have a high-speed Internet connection.
You can determine your profit or loss:- In Forex you can determine the amount of money you want to make or the amount of money you can afford to loss before placing a trade
How to make money in the Forex market
In Forex you make money in both rising and falling market, unlike in stock market that you can only make money if the market is rising.
In Forex, prices changes every second to every fraction of a second, as the price fluctuate every second, you have the opportunity to make money i.e. to Buy at Low price and Sell at High price. So, the opportunities to make money are created continuously whenever the foreign exchange rates change.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment