The World Of Forex Trading
Forex is a multi-billion dollar market, where brokers trade currencies in a truly global manner.
FOREX means "foreign exchange trading market." On the FX market, brokers make financial transactions by selling one currency in order to buy another to make profit by anticipating that the currency they are buying will reach higher values compared to the one they have sold. The facts that make Forex a truly outstanding market is that it's non-stop, 5 days a week and it's the world's largest market considering the amount of money being traded per day. FX is 24 hours a day, because as the market closes in Asia, the European one opens, then comes the US.
As mentioned, in this business, currencies are the most important asset. If you notice a typical forex chart, you will see that currencies are grouped in pairs, noted by XXX/YYY (international three letter codes of the currencies). For example, EUR/USD is the price of the euro expressed in US dollars. Stats show that over 80% of all currencies are traded against the USD, making the USD the currency that is being traded the most. The next most traded currencies are the Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), and Swiss Franc (CHF), those currencies are called majors.
Statistics show that only 5% of all forex brokers are able to achieve consistent profitable results. To be successful in the world of forex, one must posses specific forex trading education, strategy, a trading system and a winning mentality. The top forex broker is aware of all the factors that could influence the movement of one currency against another. The factors which can have an effect on Forex could be political news or situations from all over the world, government reports and economic trends.
A truly tremendous advantage of Forex trading is that it has no borders, people from all over the world can start making transactions with real money, no matter their nationality or physical location. All of this became possible with the advent of the Internet. Openning an account has never been easier, thanks to the hundreds of websites that provide forex trading platforms accesible through a website.
However, there are certain aspects of the trade to consider. This is a serious business and chances of winning or loosing are 50/50. To increase your chances of success, it's a very good idea to trade following a certain strategy that has been proven to work. Some strategies are based on mathematical calculations and analysis. Other strategies rely on political events and situations. The best idea is to combine both.
To start trading on the FX market, you need to set up an account with an official broker. There are plenty of brokers available on the Internet, so choosing the best one will require a little research from your end. Different brokers have different terms and conditions for opening an account. Some of them require a minimum deposit between $400-$2000, while others don't.
Forex websites require you to register for an account and upload funds (using a credit card, or bank wire), after doing that, you will receive access to their online trading system with the username and password you specified during the registration process. Although the trading platforms vary with their menus, options and features, they all serve the same goal. Therefore, the best idea is to open a demo account to gain some experience.
FOREX means "foreign exchange trading market." On the FX market, brokers make financial transactions by selling one currency in order to buy another to make profit by anticipating that the currency they are buying will reach higher values compared to the one they have sold. The facts that make Forex a truly outstanding market is that it's non-stop, 5 days a week and it's the world's largest market considering the amount of money being traded per day. FX is 24 hours a day, because as the market closes in Asia, the European one opens, then comes the US.
As mentioned, in this business, currencies are the most important asset. If you notice a typical forex chart, you will see that currencies are grouped in pairs, noted by XXX/YYY (international three letter codes of the currencies). For example, EUR/USD is the price of the euro expressed in US dollars. Stats show that over 80% of all currencies are traded against the USD, making the USD the currency that is being traded the most. The next most traded currencies are the Euro (EUR), Pound Sterling (GBP), Japanese Yen (JPY), and Swiss Franc (CHF), those currencies are called majors.
Statistics show that only 5% of all forex brokers are able to achieve consistent profitable results. To be successful in the world of forex, one must posses specific forex trading education, strategy, a trading system and a winning mentality. The top forex broker is aware of all the factors that could influence the movement of one currency against another. The factors which can have an effect on Forex could be political news or situations from all over the world, government reports and economic trends.
A truly tremendous advantage of Forex trading is that it has no borders, people from all over the world can start making transactions with real money, no matter their nationality or physical location. All of this became possible with the advent of the Internet. Openning an account has never been easier, thanks to the hundreds of websites that provide forex trading platforms accesible through a website.
However, there are certain aspects of the trade to consider. This is a serious business and chances of winning or loosing are 50/50. To increase your chances of success, it's a very good idea to trade following a certain strategy that has been proven to work. Some strategies are based on mathematical calculations and analysis. Other strategies rely on political events and situations. The best idea is to combine both.
To start trading on the FX market, you need to set up an account with an official broker. There are plenty of brokers available on the Internet, so choosing the best one will require a little research from your end. Different brokers have different terms and conditions for opening an account. Some of them require a minimum deposit between $400-$2000, while others don't.
Forex websites require you to register for an account and upload funds (using a credit card, or bank wire), after doing that, you will receive access to their online trading system with the username and password you specified during the registration process. Although the trading platforms vary with their menus, options and features, they all serve the same goal. Therefore, the best idea is to open a demo account to gain some experience.
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