Forex Trading for Beginners: What is Forex?
For you traders looking to spread your wings on Forex, it is only right for you to learn a bit about it.
What is Forex?
For novice traders, the term Forex might be a bit confusing because of the many varieties of trading places available to them. For the pro traders, however, Forex would be like a walk in the park because of how simple it is. It is simple for many reasons, and those reasons will elaborated below.
Before we can begin talking about Forex and how to ‘win’ at the place, it is only fair for us to learn little about it. For starters, Forex is the short for foreign exchange. In this place, any foreign exchanges take place within the laws of several regulations. The trade item in place is none other than currencies themselves. This place is basically a humongous money exchange centre for some and a foreign currency market for others. The Basics of Forex
If you are without the proper knowledge about investing in currencies, then this place would seem an ordinary money exchanger at the first glance, but if you know a tiny speck of foreign currency trading, you will notice that this place can be a place where people make money. The amount of money coming from those trades are not that small either, so one can make a fortune as long as one follows the rules and guidelines of Forex trading. Those rules and guidelines will be written on the other article, however, because for now we will get intimate with Forex before we can invite on to a dinner.
Why Forex and not others?
Simply because Forex is the biggest and the most liquid marketplace ever. The stock market got nothing on this place, and do not get me started on mutual funds and other type of funds. The daily trading can reach up to 2,000 BILLION US dollars per day. That is the average trading value on a daily basis, but there are cases when the trading value can go up to 5 billion US dollars per day. Pretty nice for a currency exchange, am I right?
Another thing that makes this place unique is the lack of central marketplace. Unlike stock trading and other type of trades, you do not have to gather around with other people to get the best possible buying and selling price. All transactions happen instantly thanks to internet, and because all transactions take place online, you can expect to trade money nearly every hour. This makes it different from stock market where the market is only open for several hours a day.
Knowing that, surely you can understand on your own why Forex is the best place to trade currencies.
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