A world full of opportunities
The foreign exchange market (Forex) is the largest and most traded market in the world. Banks, commercial companies, brokers and private traders all use it as a short and long term investment channel. Traders use online trading platforms, offered by brokers to execute their trades. In order to start trading they open accounts and deposit the amount they wish to trade with.
What happens in the Forex market is directly related to the economic, financial and political news from around the world. Every day it offers endless opportunities for high profits, as a result of the non-stop movements of the different currencies.
Fellows, if you have been looking for an efficient and smart way to invest your money instead of letting it rest and lose value you are in the right place. Forex lets you leverage your investments as you wish to. If you’re looking to combine attractive investment opportunities with the most dynamic, interesting market there is today, then look nofurther!
So what exacly is Forex
Let's make it simple: imagine you’re flying on a business trip from NY to Munich. After arriving at the terminal, you swap dollars for euros and just like that you execute a Forex transaction. A few days later, on your way back to NY, you exchange the remaining euros for dollars, but at a slightly different rate than the one you got first time. In your second transaction you executed an opposite action to the first and so closed a circle of buying and selling apair of currencies.
That is how Forex trading works! Simple, right?Forex is the buying and selling of currencies. Forex transactions always include two currencies — one is purchased while the other is sold. For example, in a Forex transaction, euros (EUR) may be purchased while US dollars (USD) are sold; or Great British pounds (GBP) purchased while Japanese yen (JPY) are sold. The two currencies involved in a transaction are considered a currency pair (e.g., EUR/USD or GBP/JPY) and each pair has an exchange rate.
Imagine the 2 currencies as a couple of heavy weight boxers, fighting an endless struggle. When one of them is ahead, the other is always behind, so first one, then the other, weakens and then gets stronger again; and on it goes forever. Each currency is indicated by a 3 letter symbol (the first 2 letters are the country it represents and the third comesfrom its name). For example, USD indicates the U.S. Dollar. The most traded currencies in the market are the USdollar (USD), the euro (EUR), pound (GBP), yen (JPY) and the Swiss franc (CHF).
The goal of Forex trading is similar to the goal of stock trading: "buy low and sell high."Currency exchange rates fluctuate throughout the day, providing traders with the potential to profit from these movements.
Advantages of Forex
| There are many advantages to trading Forex: | ||
 | Markets stay open 24 hours a day, 5 days a week, all over the world! | |
| Pay no commissions nor taxes on opening and closing accounts | |
| Be the master of your own fate: execute trades for yourself, when you want | |
| Start trading with almost any amount (25 dollars and up!). The market is accessible to anyone | |
| No force in the world is strong enough to manipulate the Forex market: it’s just too big! | |
| Never get stuck in a trade: there are always buyers and sellers so you can always close a trade you’re done with | |
| Limitless profit potential even on small investments! Thanks to leverage it’s possible to make huge returns in Forex | |
Trading sessions and hours
There are 4 global centers to the Forex trade, which follows the sun from east to west from Sydney (Australia), to Tokyo (Japan), to London(Great Britain) and on to New York (USA).
The best times to trade are when markets are frantic. During these times, volatility is higher, trends are stronger and more money is changing hands. We call these hours"Volume Hours".The busiest session is the European- London session. Money movement is the highest. Busiest trading hours each day are 13:00-15:00 GMT (because during those hours both London and NY sessions are open), and 8:00-9:00 GMT (Both London and Tokyo sessions are open). Most action takes place when 2 sessions are open simultaneously and in particular London/NY.The closing hours of the London session are usually very busy and characterized by strong, powerful trends.so,forex trading is very easy and simple for those that need to know...............
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