Introduction to the Forex Market
What is Forex??
“Forex” stands for Foreign Exchange; or some call it FX. During a forex trade, you sell one currency and you buy another. Consider you travelling to Australia and you want some dollars. What you essentially doing is selling PGK and Buying Australian Dollars. That exchange is over the counter market. These exchange has been extended also over the phone and internet and occurs almost every single day.
Foreign currency buying and selling is now a really big business with over US$4 trillion traded on a daily basis. This is how much money being traded daily in the world’s financial market. These processed of buying and selling of Foreign Currency has been decentralized and is now offered to registered financial institutions (brokers) who intend makes it possible for ordinary citizens to trade foreign currency in the comfort of their home.
Why trade Forex?
Exchange between two countries happen every single minute throughout the world. Financial institutions actively involved in Foreign Exchanges. When there is a demand for Australian Dollars, the value of AUD increases, when there is less demand for Japanese Yen, the value of YEN decreases.
With the rise and fall of currencies occurring almost every single, traders can easily buy a AUD$, then sell it in the next 5 minutes, 30 minutes, 60 minutes to earn a profit. The buying and selling of the Foreign Currency makes it a very fast turn-around time to make a profit. Off course, no one knows if the price of AUD will keep rising in the next 30 minutes or fall. Therefore, there is an element of risk associated with FOREX trading.
How do you trade Forex?
Forex trading is usually offered by Registered Brokers. These brokers offered their trading platforms for individuals to use. Top forex brokers excel in a variety of areas like trade execution, real-time access to prices and charts, and educational resources. Most brokers have several platforms, including those that are highly specific for automated and algorithmic trading. Some of the largest factors that come into play when selecting a forex trading platform are your individual trading style and experience level. Well-rounded forex platforms will have the most flexible solutions that enable you to trade and manage risk from any computer or mobile device.
Here is a list of some of the FOREX BROKERS
- UFX Markets
- InterTrader Direct
- 3D Markets
- ETX Capital
- City Index
- Easy Forex
- Saxo Capital Markets
- Capital Spreads
- MB Trading
- And many many more
Our new article will be on find a broker