Take Forex trading now!
The name Forex comes from the foreign exchange market, also known as “Forex” or “FX” for short. Basically it involves a pair of coins. Meaning you bought a coin in exchange for the currency of another country.
For example if you go from Hong Kong to USA. What do you want to do? Go to Money Changer, will you use your US Dollar in exchange for Hong Kong Dollar? By doing this you are actually selling your US dollars and buying Hong Kong dollars so that you can spend in Hong Kong. So if you go back to the US, you will also exchange your Hong Kong dollar with the US dollar. Now you are buying US dollars and selling your Hong Kong dollars. By now I hope you get the idea of basic currency trading
So why trade Forex, you may ask? Well Forex is a 24 hour market and it is one of the largest markets in the world in terms of daily volume. This amounts to 1 to 3 trillion US dollars per day. This is 6 to 8 times the volume of the world stock market. It provides a lot of liquidity in the market. Larger amounts of participants also reduce internal business opportunities. To put it simply, no developed country has had a complete currency collapse.
There are no restrictions on short sales for forex trading. Money you can buy (long) or sell (short). This means you can easily trade in a rising or falling market.
Another great advantage of forex trading is leverage. Usually leverage increases your purchasing power. This will allow you to increase your total return on cash financing. Of course there is also the increased risk of increased leverage. But if you know how to manage your own risk, it shouldn’t be a problem. For example, if you have only $ 1000 in cash and a 200: 1 leverage in your Forex Margin account, you can trade up to ,000 200,000 with a hypothetical value.
Here are some basic facts about forex trading. To take Forex trading, you can buy some books on Forex to search or read more information on the Internet. Understand the basics of Forex!