What Is Forex Trading?
Forex trading is not an easy thing to do. But, it doesn’t mean that it is difficult to learn. The forex traders generally start from amateurs who don’t know about forex. With endless spirit, they can master forex trading.
What Is Forex?
Forex or foreign exchange is the biggest market investment in the world and keeps developing rapidly every year. A forex trading shows that it reaches $5,3 billion per a day in April 2013. This is increasing starting $4.0 bilion on April 2010 and $3.3 bilion on April 2007. The biggest trading volume causes high liquidity in forex trading. The online forex trading and liquidity in forex trading keep increasing so that it attracts the biggest participation from some sides.
When Do You Trade Forex?
You can do forex trading anytime except weekend for 24 hours per a day and 5 days in a week with the biggest trading session in Europe, Asia, and America. It is your turn to determine trading with short time range or long term time. All depend on the type of a trader. Of course, forex strategies used need to consider the trading time.
What Is the Form of Forex Products?
Forex is traded in a form of currency pair. It is not like market stock in which you can buy or sell your single stock. You have to buy currency and sell the other currencies in forex trading. The currency pair mostly traded are Euro, dollar, sterling, and yen. You can choose those currencies if you want to trade forex.
The forex trading can cause value exchange of currency. The main cause is supply and demand. When the world requires more dollars, it is causing the value of dollar increasing. When there are many dollars spreading, it affects the low price. The strength moving market stock has effect to the value exchange of currency. The other factors are the increase of interest, economics data from the biggest countries, geopolitics strict, and the other factors influencing the value of currency.
Where Do You Trade Forex?
Are you a beginner learning forex trading? You can do forex trading anywhere you are. It is important to connect to internet network. The development of forex market is growing rapidly and the growth of online forex steakholders become a good partner in trading to be a right guidance. An online forex trading system is of course helpful but you must be careful in choosing online steakholder regulated officially for the safety in trading forex.
All About Forex Trading
Forex is the abbreviation of Foreign Exchange, which means currency exchange. Here are all about forex or forex trading.
What is Forex Trading?
Forex trading or trading forex is a trading of currency from different countries. For instance, buying Euro (European currency) and selling USD (American currency) at the same time. In the perspective of common people, forex trading is an activity of changing money in Money Changer, or buying and selling foreign currency manually which is done in Money Changer. In fact, it is different. Usually, the purpose of people selling or buying foreign currency in Money Changer because they want to change their currency in order to do some transactions overseas.
On the other hand, forex trading is done in order to get some profits. This kind of trading is a business activity, investigation, and it can even be a profession. The profits are gotten from the difference of buying price and selling price. Forex trading is not only able to be done physically, it is also able to be done on the internet. It is done in a platform called platform trading.
Forex Market
The actors in forex market are various, from multinational banks, big companies, countries, institution, and many more. Because the scope and the actors are global, forex market is really interesting and profitable. The market opens 24 hours because of the time difference all over the world. So that we are able to do forex trading anytime. Moreover, forex market does not have any specific physical locations. And here is the function of platform trading.
The Purpose of Forex Trading
Simply, the purpose of forex trading is to get profits from the ups and downs of the rates of currency exchange. The condition of the market and the price in forex market move very dynamically. They are able to change anytime quickly in response to economic events, politic events, disasters, wars, and many more. Specifically for countries which strong economy such as Unites States of America and Japan, if there is a sensitive information even though just a little bit, the rates of the currency will quickly move ups and downs. The traders see this event as a chance to forex trade.
The Opportunity of Forex Trading
Forex trading can only be done by big players such as big companies and institutions back then. But nowadays, all people can forex trade. With only $10, now you are also able to trade forex.
Forex trading is a trade of foreign currency. It is different from the activity of buying and selling foreign currency in Money Changer, because of the purpose. While buying and selling foreign currency is done so that the person is able to do some transactions overseas, forex trading is done in order to get some profits. Since this kind of trading is a business activity. Here are some informations you may want to know about trading forex.
The Functions of Trading Forex
In the process, trading forex has some main functions that gives effects to the actors. The functions of trading forex are divided into 3:
1. To Make the Currency Exchange Process Easier
In daily economic activity, people sometime need foreign currency. Whether it is used as business activity, shopping, trip, investment, and etc. The currency exchange is able to be done with a system that called Kliring. And one of the functions of forex trading is providing that service. Forex trading is able to be done online, so that you do not have to go to Money Changer.
2. Hedging
The second function of trading forex is hedging. Hedging means protecting the value. It is an act which is usually done by forex trader as a guarantee, so that the value of the investment funds is not decreased or loss when the trader sells foreign currency in 2 different markets. In this case, some banks are also taking roles, both bank inside the country and also foreign bank in the United States of America as the guarantor of the funds.
3. Arbitration
The third function of trading forex is to do arbitration. Arbitration is basically the difference of interest rate from 2 different currencies. And arbitration is an act which is done in order to get some profits from the difference of the currencies itself. Simply, this act is done by buying a low value currency in a country, and selling that currency in a country where the value of that currency is high.
Forex trading is just like double edged sword. You are able to get rich by trading forex and vice versa. Forex trading has a high risk so that you need to completely know how to do this kind of trading, and look for what kinds of risks which can happen. Make sure you are careful if you want to try this kind of trading called forex trading.
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