What is Trading Forex?

What is Trading Forex? – Forex Trading is trading currencies from different countries. Forex is short for Foreign Exchange (currency of exchange). An example of forex trading is buying the Euro (European currency), while simultaneously selling the USD (US currency), can be abbreviated EUR / USD.

What is Trading Forex
What is Trading Forex

Forex market

In contrast to the traditional markets. Because here traded is currency, then the market (where the merchants / traders buying and selling) is called the forex market. Who are the perpetrators of the forex market? very diverse: can bank (main), large enterprises, state, institutions, speculators, etc.

Given the scope and the culprit is global / world, the market / trading forex is seen to be very interesting. Why? Because it makes the forex market become the largest financial market (4T $ / day), and very liquid (can sell and buy at the market price regardless of the amount). Plus, this makes the forex market is open 24 hours non-stop, so that we can trade at any time, we adjust our leisure time.

Unlike traditional markets, the forex market has no physical location in particular, almost the majority of today this is done through a network of trade electronically. So the transaction process can happen quickly and in very large numbers anyway. With the development of Internet technologies (electronics) it will be very easy for new people to trade forex online.

Forex Trading Interest

Market conditions and prices in the forex market moves very dynamic, can change at any time quickly, in response to the events it economics, politics, war, disaster, etc. Especially for countries with developed economies and strong, a little no sensitive information, then the price of the currency can move up and down.

This is what the traders are seen as a chance and opportunity to make a trade. So simply, the purpose of trading forex is to achieve a profit from rising and falling exchange rates.

Forex Trading Opportunity

The Internet has made a lot of revolution in the world of trading, as well as a very strong influence in the world of forex trading. With the internet, it is now the forex can be done by anyone. If the first can only be done by a big player only (bank, country, institution), so now everyone can trade with more and more popping and online retail forex broker. You and I can trade forex online with ease and with little capital. Even to try the simulation is also very easy, by trading with a demo account facility of the broker.

Forex risk

Forex like a double-edged sword. With forex can make us rich quick, but the opposite with a heartbeat can also mengikikis depleted our capital. No matter whether you consider forex as an investment or as a regular trade, which obviously forex risk factors are high. So understand completely the risks in forex and do not let one step.

Conclusion

  • The Forex market is the largest and most liquid market in the world.
  • Trading Forex can be done anytime, 24 hours a day, Monday s / d Friday
    • Starting from New Zealand and Australia market hours 5 a.m. to 14:00 pm,
    • Then to the Asian markets of Japan, Hong Kong and Singapore at 7:00 to 16:00 pm
    • Then to European markets such as Germany and the UK hours 13:00 to 22:00 pm
    • To the American market hours of 20:00 to 5:00 (the next day).
  • With the latest developments (Internet) then forex trading can be done online (anywhere) with the help of a laptop or gadget.
  • Forex can quickly make you rich or poor.
  • Due to a big risk, you must be wise and really understand forex completely before you decided to jump in it.

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