Forex or Foreign Exchange refers to the buying and selling of stocks. It is the most important trading market in the world. The biggest companies, businessmen, and countries participate in this market. Everyone can participate in Foreign exchange trading, if you are on a vacation and you’ll exchange your dollars to any currency, you already participated in the market. The demand for the currency will dictate how strong or how weak that currency is. You can see in this link how U.S dollars and Stock Market are correlated.
Currency is always trades in pairs. You can’t trade Euros to Euros. It is always against another currency.
Forex uses symbols for currencies. EU for Euro, USD for US dollars, CAD for Canadian Dollar so on and so forth. Each Forex pair has an equivalent market price. For example, if the pair price is 1.3 EUR/USD, it takes 1.3 USD to buy 1 EUR. If you want to buy USD using EUR, you only have to divide 1 by 1.3. The prices fluctuate by the minute, depending on the economy of the country, market value or current events. Some pairs fluctuate from 30 to 100 times a day. Forex Market is very volatile. You can earn big or lose big in a matter of hours sometimes minutes. If you look at https://www.oanda.com/currency/converter/, You can see that almost every minute, prices go up and down base on the market’s status.
How to trade.
Some traders say that beginners should trade without gearing. Start from scratch. First get used to trading on a non-geared basis. There are instruments you can use if you are just starter in Forex market trading. You can use trade notes that will give you exposure to currencies without using Forex. The safest way for beginners is to trade virtual money. It will help you familiarize the market and avoid losing a large amount of money. However, always see to it that the platform you are using is legit and trusted. In today’s world where everything is on the internet, scam artists can enter any platforms without the risk of getting caught. Forex trading is spreading like wildfire nowadays. I bet, if you googled probusfx cyprus broker, you will get hundreds if not thousands of search results. Educating yourself first about trading is the best way to start with this line of business.
If someone says to you that trading is easy and will get you rich in no time, most probably they are lying. It takes skills, perseverance, technique, strategy and most importantly, luck.
To know more about forex analysis, visit: https://www.forex.com/en/market-analysis/latest-research/
How much money in trading forex?
Due to the leverage, forex traders can make a lot of money, I mean a LOT! The return on investment is astonishing if done right. But one small mistake, traders can also lose money big time. The sad part is, there are factors affecting the market that is out of trader’s hand, like the economy, oil price, wars, economic bubble and many more. As I say, it takes skill and a lot of luck if you want to succeed in this business. The thing is, the expectation of ROI (return on investment) is very critical when trading. When a trader expects too much about his account, they rely on leverage too much and they experience losing the account over time. You have to be realistic in dealing with Forex.
If you want to know more about Foreign Exchange and its history, visit: http://onlinefx.westernunion.com/Learning-Center/Business/the-history-of-foreign-exchange