Forex - The Thrill Ride

FOREX is one of the latest crazes to sweep the planet.
Forex is one of the hottest and largest financial trading markets in the world today. The rise of the new E-economy caused online Forex trading website and firms to be able to offer trading accounts to almost anyone with a computer and an Internet connection. In our days everyone can trade currencies just like the world's largest banks do.
The Foreign Exchange, also referred to as the "Forex" or "FX market", is the practice of currency trading with over $2.5 trillion changing hands every single day.
Forex trading is where the currency of one nation is traded for that of another. If you have been abroad on holiday or business you have already done it. You exchanged your domestic currency for that of the currency of the country you were travelling to.
The Forex market is different though, by actively engaging in online trading using broker platforms you can buy and sell currencies for huge profits. This is because you trade with a 'leverage' so that even a small amount of money can quickly become a huge amount if you make the right trade.
Unlike the stock market which is ruled by those with inside knowledge, Forex gives everyone an equal footing, you can make good money even with very little experience.
The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars etc. That's all.thats how does one profit in Forex, buy cheap and sell for more! The profit is generated from the fluctuations in the currency exchange market.
There is not a central exchange for the Forex market, so these pairs and their crosses are traded over the telephone and online through a global network of banks,forex websites,brokers and currency traders.
The process is very simple and obvious,no expert knowledge of an industry is needed, that is the beauty of FOREX, thousands can be made whether you are decided to learn and experiance!
Forex is a skill that takes time to learn !!!
Forex can seem to be tough at the first instance to a new investor but once you have understood the process of the trading,then it is all about making the right decision and earning a handsome profit. with various fundamental and technical analysis tool available in the market,a careful investor can make huge profit by trading currencies. A small margin deposit can control a much larger total contract value. That Is what we call 'Leverage'.
'Leverage' gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. some online Forex firms offer up to 200 to 1 leverage, which means that a $100 dollar margin deposit would enable a trader to buy or sell $20,000 worth of currencies.
The exciting thing about the Forex market, is those regular daily fluctuations,an example - if the exchange rate of a pair of currencies increased by 0.6% in the last hours, your profit will be 60% on your investment!(1:100) Such can happen in a few hours or even minutes! Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.
An exciting advantages of Forex trading is the ability to generate profits whether a currency pair is up or down, in a 'rising' and 'falling' markets. Skilled Traders do make money in this field, however like any other career, success doesn't just happen overnight.
Most Online Forex firms offer free 'Demo' accounts to practice trading, along with breaking Forex news and charting services. These are very valuable resources for traders who would like to develope their trading skills with 'virtual' money before opening a live trading account. a new trader should practice trading on a demo account and pretend the virtual money is your own real money.Do not open a live trading account until you are profitable trading on a demo account. It is important that you learn how to buy and sell the currency pairs, set stop losses, set profit limits, and understand how leveraged margin works when you trade.
Understanding risk management is a very important reality when trading the Forex Markets. Losing trades will happen, and managing those losses are the key to your success.
Happy Trading
Ziki De Naim
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