Easy-to-understand guide for teaching beginners how to trade the foreign currency market.
Learn basics of FOREX market and currency trading explained for FOREX newbies. Get the most important information on FOREX trading.
The currency (foreign exchange) market is the largest and oldest financial market in the world. It is also called the foreign exchange market, or "FOREX" or "FX" market for short. It is the biggest and most liquid market in the world with daily average turnover of US$1.9 trillion, and it is traded mainly through the 24 hour-a-day inter-bank currency market - the primary market for currencies.
Foreign Exchange simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs.
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.
Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centers of the U.S. Australia New Zealand Far East Europe U.S.
Currency Symbol / Currency Pair
EUR/USD = Euro / US Dollar
GBP/USD = Pounds Sterling/ US Dollar
USD/JPY = US
USD/CHF = US
USD/CAD = US
AUD/USD = Australian Dollar / US Dollar
NZD/USD = New Zealand
Etc.In excess of 85 percent of all daily transactions involve trading of the major currencies - Australian Dollar, British Pound, Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar.
What Next
Well now we have a basic understanding of how Forex market works what next? Now you are going to decide best way to trade the Forex market. The most common approaches are Forex fundamental analysis and Forex technical analysis.
Well now we have a basic understanding of how Forex market works what next? Now you are going to decide best way to trade the Forex market. The most common approaches are Forex fundamental analysis and Forex technical analysis.
Forex Fundamental analysis: Usually everyday, and often more than once a day, the currency pair will be moving along slowly (sideways movement, consolidation) and then all of a sudden it JUMPS! It very quickly moves up ten or more pips, usually in just a minute, and often continues to move strongly for another hour or so. This is due to the release of a “Fundamental Announcement”, and of course any experienced trader should understand that they usually create a market movement.
Forex Technical Analysis: It is technique to learn Forex market using chart and indicator to predict the future price of a security.
Forex is the biggest foreign exchange market in whole world. It was invented for huge players such as banks or other huge companies but now thanks to Internet development and new platforms with small deposits it is open for commoners! You needn't have thousands or even hundreds of dollars to trade on forex because some platforms allow playing with very small amount of money f.x 1$.
The platform which I want to introduce is Marketiva-Forex platform. It was created in 2005 with headquarters in Lozanna in Switzerland. Minimum deposit in Marketiva is only 1$ and what's more you get additional 5$ for free to play with "real money" and 100000$ "virtual money" for training.
Start With Marketiva-Forex platform
Forex is the biggest foreign exchange market in whole world. It was invented for huge players such as banks or other huge companies but now thanks to Internet development and new platforms with small deposits it is open for commoners! You needn't have thousands or even hundreds of dollars to trade on forex because some platforms allow playing with very small amount of money f.x 1$.The platform which I want to introduce is Marketiva-Forex platform. It was created in 2005 with headquarters in Lozanna in Switzerland. Minimum deposit in Marketiva is only 1$ and what's more you get additional 5$ for free to play with "real money" and 100000$ "virtual money" for training.
So be part of broker marketiva, you got nothing to loose and lots to gain. Spend some time on the website and you just might surprise yourself by how much you learn and in six months or a year from now you could be trading for a living. Enjoy Forex Trading in Marketiva, doing Trade from Home or Office. Open an account now, be successful trader in the forex market.
However, it is common that one afraid of being involved in Forex market because of high risk in this trading field. Although every capital market involves certain level of risk, the risk of loss in foreign currency trading market can be extensive. It would be wise to learn about the potential risk (and managing it) if you wish to trade in Forex market.
