What is Forex?

Forex” is a popular short name for foreign exchange and generally refers to off
exchange trading in foreign currency.

 

The Forex market is the largest trading market in the world, by far! Forex traders include banks, commercial firms and people like us - private traders who want to take advantage of these markets for themselves without the hassle and charges of the banks. To begin trading you need to choose a broker, open an account and deposit the amount of money you choose to trade with. After that you will get access to a trading platform where you can execute all your trading activity.

 

Every day the Forex market offers endless opportunities to make significant profits because of the continuous movements in foreign currencies.

 

High volatility, liquidity and leverage make this market a golden egg for those who know how to exploit it. If you are a newcomer to trading, feeling clueless, or that you lack the confidence to start: do not sweat it. Anyone can trade. That is the beauty of the Forex market. Its power is in its simplicity. It may seem complicated but it doesn’t need to be. The truth is that Forex can be simple, you just need to invest in understanding how it works, and start using the right tools to help you trade well.

 

And most important – to really take advantage of online trading, you need  to use the knowledge and wisdom of other successful traders. And this exactly what we do here: we are a group of successful traders, helping new traders like you to take advantage of the Forex market. Follow our strategies, get our market insights and alerts, and learn from our knowledge and experience – and you will be on your way to success.

 

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 are looking to combine attractive investment opportunities with the most dynamic, interesting market there is today, then look no further!

 

So what exactly is Forex?

 

Let us make it simple: imagine you are flying on a business trip from New York to Munich. After arriving at the terminal, you swap dollars for euros and just like that you execute a Forex transaction. A few dayslater, on your way back to New York, 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 a pair 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 atransaction are considered a currency pair (e.g., EUR/USD or GBP/JPY) and each pair has an exchange rate.

Imagine the two 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 comes from its name). For example, USD indicates the U.S. Dollar. The most traded currencies in the market are the US dollar (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 Trading

 

There are many advantages to trade Forex:

 

  1. Markets stay open 24 hours a day, 5 days a week, all over the world!

  2. Pay no commissions nor taxes on opening and closing accounts

  1. Be the master of your own fate: execute trades for yourself, when you want to

  2. Start trading with almost any amount (25 dollars and up!). The market is
    accessible to anyone

  1. No force in the world is strong enough to manipulate the Forex market: it’s just
    too big!
    Limitless profit potential even on small investments! Thanks to leverage it is possible to make huge returns in Forex

  2. Never get stuck in a trade: there are always buyers and sellers so you can alwaysclose a trade you’re done with

     

We recommend reading some more facts about the Forex market:

 

http://en.wikipedia.org/wiki/Foreign_exchange_market

 

 

Risk warning

 

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial adviser if you have any doubts.