Things You Should Know about Currency Forex Market Trading

Forex market trading

Forex trading is an interesting way to make lots of money. Currently, there are good trading system that offered online. Before seeing the Forex market currency trading is essential to have a basic understanding of what it is. 

Lesson 1.
What is the currency Forex Market Trading?
Foreign exchange market, also known as Forex or FX market is the place (cash) currency market. Every day, over 3 trillion dollars traded. It is over 30 times larger than the combined volume of all U.S. equity markets (before the fall of the stock market). Forex plays a vital role in the global economy, as major players in banking, industry (exporters and importers around the world) and traders buy and sell currencies 24 hours 6 days a week. 

The market is open from 5:00 p.m. 7:00 a.m. Monday morning New Zealand time and ends on Friday evening New York time. There is no trading floor and all trade is done electronically with the dealer principal, based in London (the capital of Commerce), New York, Hong Kong / Singapore, Sydney and Tokyo. 

As a Forex Trader you buy and sell one currency against another. If you buy yourself the value of money increases, if you sell you expect the value down. Forex currency has always traded in pairs, which simply means that if you sell one of your partners is actually the purchase of other currencies in the pair. Currency prices are displayed as how much the currency exchange is one of the base currency. 

Let me give you an example. One partner is the most popular European and Euro Dollar U. S.. An estimate for possible matches EUR: 1.3901 USD, which means that one euro is worth 1.3901 dollars. Denominated in a currency pair (EUR) is the base currency and the currency 2 (USD) is the quote currency. We will return in more detail in a later article, now explain what Forex Trading is and some of the benefits associated with it.

Why Forex? 

o It is a 24-hour market, open six days a week. There is no waiting to open in the morning unable to trade while you lose money.
o It is the largest market and can absorb large transactions.
o There is no bear market, like the stock market. As you trade in two currencies simultaneously, through the purchase of a selling other currencies, in order not matter how the market will be one of the currencies will increase. Again, we will use the USD: USD pair for example. If USD decline in the value of USD will rise and if the USD rises USD will drop in value. 

o High Leverage. Due to the high level of liquidity brokers typically offer up to 200:1 leverage. Some will go to 400:1. This means a lot 100:1 leverage standard $ 100,000 can be exchanged with a 1% margin of $ 1,000.00. There are mini accounts that allow control of $ 50 to $ 10 000. 

o The movement of prices is seen as predictable. Graphics currency trading have been studied for over 100 years and even if they are volatile cycle seems to repeat and create a trend that when you use technical analysis is easier to predict than other markets. 

o Commission-free trading. Brokers will announce that they do not charge commission, but they do not spread the cost is the difference between the bid / ask price. In other words, the difference between what you buy and the price you get if you sell. 

o Forex Trading You get instantaneous execution of orders, all orders electronically and because trade is through the command platform for the Internet more directly. 

The Forex market currency trading is now available to small traders. You do not need $ 100,000 of start negotiating, but you need a plan, a strategy and a reliable system. Good luck with your trading.

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