Things You Need to Know about Forex
If you do not really know the definition of Forex, forex is currency trading from many different countries. Forex stands for Foreign Exchange. The example of forex is when you buy Euro and at the same time you buy USD or it can be said EUR/USD. Maybe before you knowing it, you though that trading forex is to exchange the money in Money Changer or sale and purchase of foreign currency through Money Changer. Whereas, forex is different from manual transaction in Money Changer. In general, the aim to buy and sell money changer is because the need to exchange the foreign currency to transact in other country. And forex is conducted online to get the profit. You should know that forex with the purpose of getting profit is done with an intermediary of broker forex.
1. Forex Market
It is so much different from traditional market. It is because it sells and buys the currency and it is called Forex Market. There are many market players such as multinational banks, big companies, countries, institutions, speculators, etc. It because there are many market players; forex market becomes the biggest currency market that results $4 trillion/day. It is also liquid (people can sell and buy whatever they want). Forex market opens 24 hours because there is different time in this world. So that you can do the trading whenever you want. In Forex market, there are things that the names are EURUSD, GBPUSD, GBPJPY and many more. Each name has each own price. There is also the movement price movement. There is micro account ($10), standard ($100) and unlimited ($500).
2. The purpose of Forex
In a simple way, the purpose of forex is to get the profit from up and down of the currency. The condition of market and the price move and it is very dynamic. It can change fast responding incident like economic, politic, war, disaster, etc. Especially for developed countries such as United States and Japan. If there are sensitive or bad news about the countries, the value of the currency will drop. This is the chance for the trader to do the trading.
3. Forex trading opportunities
Forex is like a sword with two eyes. It can be said that forex can make us rich fast but we can also lose the much money we have. If people say that forex is considered as investation, it can be also said that forex has high risk. So, you have to really understand about the risk when you do the trading. For your information, forex is the biggest and the most liquid market in the world. You can do the forex trading anytime you want, 24 hours non-stop, from Monday to Friday. It begins with Australia market (Sydney) ant 05.00 AM – 02.00 PM, THE Asia market (Tokyo) in Japan, Hongkong & Singapore at 07.00 AM – 04.00 PM, after that Europe market in Germany and England begin at 01.00 PM – 11.00 PM and then US (New York) at 08.00 PM – 05.00 AM.
With the internet, trading forex can be done online wherever and whenever you want with your laptop or your smart phone. Forex can make you rich or poor fast. You have to be wise against the big risk. You really have to know all about forex before you start playing with it. If you have decided to do the trading forex, you are better to do or exercise in forex demo first. The account of demo forex is in broker forex that can make you trade with virtual funds but the graphic value of currency is like the real market.