The foreign exchange market or Forex is the global currency market. Day by day volume is in excess of 5.3 trillion. Dollar, this is the biggest and most energizing budgetary markets on the planet. If you pitch 100 euros to purchase a dollar at an airplane terminal or a bank, trade $ 100 million for one Japanese yen with just another bank, both of which are forex exchanges. Participants in the Forex market range from expansive money related establishments that oversee billions to an individual who trades many dollars.
Sign in to Forex Trading Online
On account of the Internet, you can trade in the Forex market simply like traders from the biggest banks and speculation reserves.
All you have to begin is a PC associated with the Internet and an exchanging account with a forex broker.
How Forex Trading Works
In the Forex market, a currency is exchanged for another currency. Most important in the Forex market is the exchange rate between two currencies (currency pair).
You may have seen this in the news:
Currency Exchange Rate
EUR / USD 1.4515
GBP / USD: 1.6430
The exchange rate can change very quickly, sometimes several times per second, so there are many actions that are done 24 hours a day, 5 days a week. In general, exchange rates reflect the health of countries. If the eurozone economy is better than the US economy, the euro will grow against the dollar (EUR / USD) and the other way round.
How to Win in the Forex Market?
Here is an example of Forex trading. I decided to buy 1000 euros against the US dollar. The EUR / USD you can buy at the moment is 1.4500, paying $ 1.450.
Later, the EUR / USD exchange rate, which you can sell in Euros to the US Dollar, is 1.5500. You sell 1000 euros and you get $ 1,550. Starting at $ 1,450, you now have $ 1,550 – a profit of $ 100. Alternatively, the EUR / USD, which you can sell in EUR to USD, is 1.3500. You sell 1000 euros and you get $ 1,350. Starting at $ 1,450, you now have $ 1,350 – you lost $ 100.
This is how money is generated or lost in the Forex market.
If you look at Forex prices on your trading platform, you will see that there are two prices for each pair of currency pairs. One of them is the price you can buy, called the “asking price”, the other is the price you can sell, and the “bid price” is called. The difference between these two prices is known as the difference. The asking price is always higher than the bid price.
If your FOREX broker offers you a leverage of 1: 100, you can trade more than 100 times your deposit. This translates to means that if you need to purchase100,000 EUR / USD, you only need 1000 euros. Because of this lever, you can handle a position that is 100 times greater, resulting in 100 times more profit or loss, so you need to be very careful when you make the transaction. On the other hand, stocks are trading without a lever.
Make your first deal on Forex
To begin, please get a free record and sign in. At that point select a currency combine (for instance, EUR/USD), select the amount and snap BUY on the off chance that you figure the esteem will go up. You are presently a market trader utilized by a great many individuals around the globe. You will acquire cash if the EUR/USD cost goes up and loses if it falls. Check the present benefit or misfortune in the “Open Positions” window. You can keep up this situation as long as you need. When you would prefer not to keep your position, let the big dog eat by tapping the X caught in the open positions window.
Long and short trades
In the example above, we bet that the euro will rise against the US dollar, so we bought the EUR / USD in the hope of selling it later at a higher price. This is called a long position. But what if we expect the euro to fall against the US dollar? Well, then you can do the opposite: sell EUR / USD, expecting to buy it at a cheaper price later. Short trade allows you to use them if the exchange rate is reduced.