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Forex Trading Information

FOREX — the foreign exchange (currency or forex, or FX) market is the and the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky.

The Market

The currency trading ( fore exchange , forex , fx) market is the the biggest and fastest growing on earth. Its daily turnover is more then 2.5 trillion dollares. The Participants in this market are central and commercials banks, corporatons, institional investors, hedge funds, and private individuals like you.

what happens in market?

Markets are places where goods are traded, and the same goes with Forex . In Forex makets, the ''goods'' are the currencies of various counters (as wel as gold and silver). For example, you might buy Euro with US dollars, or you might sell Japanese Yes for Conadian dollars. It's as basic as Trading one currency for another.

Of Cours ,you Don't have to Purchase or sell actual, phyical currency: you trade and work with your own base Currency, and deal with any currency pair you wish to.

"Leverage" is the Forex advantage

The ratio of investment to actual value is called "leverage". Using a $1,000 to buy a Forex contract with a $100,000 value is "leveraging" at a 1:100 ratio.The $1,000 is all you invest and all you risk, but the gains you can make maybe many times greater.

How does one profit in the Forex market?

Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs. The advantageous thing about the Forex market is that regular daily fluctuations – in the regular currency exchange markets, often around 1% - are multiplied by 100!

How risky is Forex trading?

You cannot lose more than your initial investment (also called your "margin"). The profit you may make is unlimited, but you can never lose more than the margin. You are strongly advised to never risk more than you can afford to.

Exchange rate