What is Forex anyway?
Forex (Short Form of Foreign Exchange) is a financial market where traders can trade (buy or sell) foreign currency. For a beginner trading in Forex is a lot complicated. You need to understand a lot of terminologies, procedures, tricks and strategies. But, Forex trading is a very exciting world owing to its immense size, unpredictability and timings as the markets runs straight from 5 pm EST Sunday to 5 pm EST Friday straight. Trades can be made instantaneously and decisions to buy and sell are being made all the time.
The Basics
If you believe value of a market instrument is going to increase, then you would buy the instrument and at one point in the future you would sell it for a higher price. Simple!
Your goal in trading is to buy at a lower price and sell afterwards for a higher price. The basic article being traded here is money. Yes, MONEY! The Forex has a daily trading of $3.2 trillion. The New York Stock Exchange doesn't even trade a quarter of a trillion per day. That's how huge it is. It is a huge and most popular market for speculation owing to its huge size, liquidity and the fact that currencies follow trends!
Then, the Forex is open 24 hours a day, right from 5 pm EST Sunday to 5 pm EST Friday, so you can trade anytime, from anywhere and whenever you feel like!
Finally, trading currencies in Forex is both risky and profitable. It is risky if you DON'T educate yourself with the necessary knowledge required to be a Forex Trader. It is profitable if you educate yourself and commit yourself to continuously learning the trade.
To be continued...
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