FOREX is the largest global trading market and greater liquidity. Many consider FOREX as the best home business you can ever venture in spite of the common people have had the opportunity to take part in trading currencies for profit (in the same way banks and large companies do) since 1998, is now becoming the cool, hip, new "thing" to talk about parties, corporate events, and other social gatherings.
Although it has been something of a secret free, every day more and more investors are turning to all-electronic world of Forex revenues and earnings due to its many benefits and advantages over traditional commercial vehicles, as stocks, bonds and commodities.
But still, every time something new seems or is it just part of social conversation, news articles, and water cooler gossip, misconceptions have been overcome, the mind must be open and the list has to be clear to the fresh start with the correct information.
Therefore, this article is my attempt to give some solid, but not excessively detailed information on what the heck "FX" (FOREX) involves, what it is and why it exists. As one successful trader, Forex is like picking money off the floor. Forex is not like going there for someone else to collect. "Others in the industry have also said, Forex is like having an ATM on your own computer.
Here's an explanation (I feel you'll appreciate) of what FOREX is and how a group of traders, profit from it:
The Foreign Exchange market, also referred to the "FOREX" market or "FX" is the (cash) for the currency market.
But do not confuse FX as trading the futures markets, where you buy a contract to purchase a particular currency at a future price in time. What FX traders is not much less risky than the foreign exchange market in the futures market, much more profitable and much easier, than trading stocks.
So you're wondering where ... or ... how to access the foreign exchange market?
The answer is: FX Trading is not limited to a single trading floor and is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered one. Over-the-Counter (OTC) or 'Interbank' market due to the fact that the entire market is run electronically, within a network of banks continuously over a period of 24 hours
Yes, if that's the first time I've heard of a fully electronic market, I know this may sound interesting to you.
This is what we are actually trading by participating in the Foreign Exchange (Forex):
In essence, like the big banks that use the currency market to protect against fluctuations in the exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one currency other countries. So, in reality, an e-commerce currency pair and the price quoted to us is the exchange rate between two currencies. In other words, simply the quoted price is the amount of the currency of a value of 1 of the other currency.
Example:
EUR / USD last trade 1.2850 - One Euro is worth U.S. $ 1.2850 dollars.The first currency (in this example, the euro) is known as the base currency and the second (/ USD) as the counter or quote currency.
The FOREX has a daily volume of about $ 1.5 billion - 30 times greater than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each have $ 1 million of the forex market every day and the FOREX would still have more money than the New York Stock Exchange every day!
The FOREX plays a vital role in the global economy and there is always a great need for foreign exchange. International trade increases as technology increases and communication. As long as there is international trade, there will be a foreign exchange market. The forex market has to exist for a country like Japan can sell its products in the United States and be able to receive Japanese Yen in exchange for U.S. dollar.
There are a lot of money to be made use of foreign exchange for many traders who use fair trade techniques / tactics that they can benefit greatly. And with only 5% of the daily turnover of volume coming from banks, government and large companies that need to cover the other 95% is for speculation and profit.
Although it has been something of a secret free, every day more and more investors are turning to all-electronic world of Forex revenues and earnings due to its many benefits and advantages over traditional commercial vehicles, as stocks, bonds and commodities.
But still, every time something new seems or is it just part of social conversation, news articles, and water cooler gossip, misconceptions have been overcome, the mind must be open and the list has to be clear to the fresh start with the correct information.
Therefore, this article is my attempt to give some solid, but not excessively detailed information on what the heck "FX" (FOREX) involves, what it is and why it exists. As one successful trader, Forex is like picking money off the floor. Forex is not like going there for someone else to collect. "Others in the industry have also said, Forex is like having an ATM on your own computer.
Here's an explanation (I feel you'll appreciate) of what FOREX is and how a group of traders, profit from it:
The Foreign Exchange market, also referred to the "FOREX" market or "FX" is the (cash) for the currency market.
But do not confuse FX as trading the futures markets, where you buy a contract to purchase a particular currency at a future price in time. What FX traders is not much less risky than the foreign exchange market in the futures market, much more profitable and much easier, than trading stocks.
So you're wondering where ... or ... how to access the foreign exchange market?
The answer is: FX Trading is not limited to a single trading floor and is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered one. Over-the-Counter (OTC) or 'Interbank' market due to the fact that the entire market is run electronically, within a network of banks continuously over a period of 24 hours
Yes, if that's the first time I've heard of a fully electronic market, I know this may sound interesting to you.
This is what we are actually trading by participating in the Foreign Exchange (Forex):
In essence, like the big banks that use the currency market to protect against fluctuations in the exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one currency other countries. So, in reality, an e-commerce currency pair and the price quoted to us is the exchange rate between two currencies. In other words, simply the quoted price is the amount of the currency of a value of 1 of the other currency.
Example:
EUR / USD last trade 1.2850 - One Euro is worth U.S. $ 1.2850 dollars.The first currency (in this example, the euro) is known as the base currency and the second (/ USD) as the counter or quote currency.
The FOREX has a daily volume of about $ 1.5 billion - 30 times greater than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each have $ 1 million of the forex market every day and the FOREX would still have more money than the New York Stock Exchange every day!
The FOREX plays a vital role in the global economy and there is always a great need for foreign exchange. International trade increases as technology increases and communication. As long as there is international trade, there will be a foreign exchange market. The forex market has to exist for a country like Japan can sell its products in the United States and be able to receive Japanese Yen in exchange for U.S. dollar.
There are a lot of money to be made use of foreign exchange for many traders who use fair trade techniques / tactics that they can benefit greatly. And with only 5% of the daily turnover of volume coming from banks, government and large companies that need to cover the other 95% is for speculation and profit.
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