What is Forex?
Forex is ttrading various currencies from around the world. The Forex trading started way back in the 1970s. In recent years it has caught on like a virus in the stock market world. Forex trading is recorded to have transactions grossing about USD $1.5 trillion in transactions daily!
The aim of forex trading
The aim of Forex trading is to make profit with increasing or decreasing currency prices. A trade is place when you expect the value of a specific currency to increase. In a currency pair, when the currency you buy increases, you must sell the other currency to make a profit. An open trade, or open position, this a trade in which you have already bought or sold a currency pair, but have not yet bought back an the same amount. The five most popular currency pairs in Forex at the moment are USD/Yen, Euro/Yen, Pound/USD, Swiss franc/USD, and the Euro/USD.
How to get started forex trading
To start Forex trading, you will have create an account through a Forex broker. Then, you will need to a Forex trading strategy that works best for you. The strategy you intend to use should be tested using a practice account if possible, before you start investing real money. This will enable you to become familiar with Forex trading without any risk to you.
Good points to forex trading
Forex trading offers more great chances of short-term profits than the stock market because money prices go up and down fast. The trading periods open an close in secons, so money is made quickly. Forex trading is also easier to manage than the stock market because you are only keeping up with currencies, not hundreds or thousands of companies.
Bad points to Forex trading
Trading can be riskier than the stock market. Because you can loose money instantly. Forex trading also requires monitoring throughout the day to enjoy maximum benefits. If you dont monitor it you could loose a lot. [Read More...]
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