Planning For Forex Trading: What you need to know about it

Filed in Learn Forex Trading by on September 22, 2008 0 Comments • views: 257

Overview
Forex or foreign exchange or FX are the terminology used to describe the trading of the currencies of the world. The largest market in the world, with trades totaling up to more than $3 million every day, is the forex market. It is also the most liquefied monetary market in the world.

The forex market is conducted by the ‘interbank’ market, which is perceived as an over the counter market. The trade between the two equivalents can either be processed in real time online or over the phone in all parts of the world. New York in the US, Sydney in Australia, London in Great Britain, Tokyo in Japan and Frankfurt in Germany are the main centers for forex trading. And since the arena of the market is all over the world then the forex trading industry is open for 24 hours.
Why do you need to trade forex? What are its benefits?

24 hour trading- This is a primary advantage for forex trading investors. It starts from Sunday evening to Friday evening. This advantage is distinctive as you can easily make a reaction if there are life-altering or economic emergencies in the world that can influence the market.
No commissions- It is an appealing thought to make profits without paying any payment fees or commissions at all. This is a very lucrative investment opportunities.

Superior liquidity- You will never have to worry if there will be buyers and sellers in the market because it is a fact that since the market is so liquid there will always be a seller offering a trade and a buyer that is willing to make the deal.

Most Traded Currencies (by rank)
1. United States Dollars (USD)
2. Euro (EUR )
3. Japanese Yen (JPY)
4. Pound sterling (GPB)
5. Swiss franc (CHF)
6. Australian dollar (AUD)
7. Canadian dollar (CAD)
8. Swedish krona (SEK)
9. Hong Kong dollar (HKD)
10. Norwegian krone (NOK)
11. New Zealand dollar (NZD)
12. Mexican peso (MEX)

Most currencies are traded versus the US dollar. Four of the currencies, commonly referred as the “Majors”, that are usually traded are the Japanese yen (JPY), the euro (EUR) , the British pound sterling (GPB) and the Swiss franc (CFH).

How to be a good forex trader

make money with forex

make money with forex

Be informed. There are a lot of mediums out there that can be used to learn the details, principles and nuts and bolts of the forex trading industry. Beginners have the advantage to self-study online or research books about it. You can also use television to monitor the currency as well.

Ask about it. You can’t always learn by yourself. And one way to increase your knowledge about it is to interact in forums online that discusses forex trading. Normally, veterans posts inputs in forums about their experiences and thoughts about the forex market so it’s a good means to be educated.
Try utilizing free demo accounts online. Sites normally offer two weeks to a month trial period that beginners can use to have the ‘feel’ about the market.

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