Getting Started in FOREX Trading

Getting Started in FOREX Trading

The foreign exchange market (FOREX) has no central exchange location yet it is the largest financial market in the world. It is over 3x's the size of the stock and futures markets combined and run through an electronic network of banks, corporations and investors.

The exchange consists of simultaneous buying of one currency and selling another. Currencies are traded in pairs, in other words, one currency is traded for another. Major currencies:

1st USD - U.S. Dollar

2nd EUR - Euro members Euro

3rd JPY - Japanese Yen

4th Britain - Great Britain Pound

5th Switzerland - Swiss franc

6th CAD - Canadian Dollar

7th AUD - Australian Dollar

There are 2 types of investors involved in the FOREX market.The first type of investor is the hedger. The hedger is involved in international trade and use FOREX trading to protect their interests in the transaction from adverse currency fluctuations. The 2nd type of investor is a speculator who invests in currency solely for profit.

Currency prices fluctuate due to various economic and political factors. The main factors are:

1st Interest rates

2nd International trade

3rd Inflation

4th Political stability

There are many reasons investors take a great interest in FX trading Some of the main reasons are:

1st No fees

2nd No intermediaries

3rd No fixed trade sizes

4th Low transaction cost

5th High liquidity

6th Quick transactions

7th Low margin / high leverage

8th 24-hour market

9th Online access via online trading platforms

10th Always good opportunities to trade, unlike the stock market is never bullish or rough.

11th No one person can control the market

12th It can not happen insider trading

To start trading in Forex market, the investor only needs a computer, high speed internet connection and online trading currency. A mini account can be opened for as little as $ 100.




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