Forex trading is the trading of foreign exchange or foreign currencies. It is the decentralized global market where people trade world currencies. Whereas Foreign Exchange is a process of exchanging currencies for trading, tourism, business, etc. The average daily volume that is being traded at the foreign market is greater than 5 trillion dollars. It leaves behind all the other world stock markets of the globe.
What is Forex Market:
Forex Market is where people and companies trade foreign currencies. As we know, the currency is the most important thing for everyone to conduct trade, business, and expenses. In simple words, if you need to buy a machine from another country, you have to pay for that in the currency they use. So you first have to convert the currency of your country into theirs.
The Forex markets are unique in the sense that there is no central market place and remains open 24 hours a day, five and a half days a week. The currency is being traded at various financial centers like London, Sydney, Tokyo, NewYork, Zurich, Frankfurt, Hongkong, Singapore, and Paris. So the market is extremely active all the time.
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Opportunities in Forex Trading:
Like every market Forex market is full of opportunities. But to become successful in forex trading one must have to learn the basics of trading. Like other stock markets, this platform is also based on your thinking of where the value of the currency is heading. However, finding a buyer or seller in such a big market is very easy compared to stocks.
For example, you have Russian Currency (Russian Ruble) and you have the idea that Russia will lower its currency to get the foreign exchange. You then start selling Russian currency and will get profit. The more the currency goes down the more will be the profit. On the other hand, if the currency value goes up you go into loss.
Forex Trading Platforms:
There are various online forex trading platforms for trading of currencies. Some of them are:
- FXCM: https://www.fxcm.com/uk/
- Forex: https://www.forex.com/en/trading-platforms/
- IG: https://www.ig.com/en/forex
These platforms provide you with opportunities to work with and without brokers. Some of the online platforms are free and take no fee for transactions.
Forex Trading Learning:
It is very important and recommended to get proper training before entering the forex market. Otherwise, this market can give more losses than profits. Some people start trading on the advice of local brokers eventually lose money. So to gain consistent profits you need to be prepared.
It is recommended to attend webinars and trading classes online or go attend some training physically. Ask questions and queries to understand the basics and critical points. Develop solid habits of trading and start small to gain experience. Try not to put all your money in one currency and keep yourself up to date.
At the start try to trade small and for short terms. Make your goal and play with a strategy. TLW will keep on educating you on this topic with further articles.
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