What is Forex? Forex Facts

What is Forex? Forex Facts

Currently many benefits and advantages for trading currencies on foreign exchange, recognized as a better exchange rate.

Forex exchange was established in 1971. This market grew at a steady rate during 1970, but in the 1980s Forex trading has increased from 70 billion U.S. dollars for each day to more than 1.5 trillion U.S. dollars every day.

Here are many giant players in Forex, but it is friendly to the individual trader. Each lot traded is worth approximately $ 100,000. By using leverage, a sole proprietor is only required to have a $ 1,000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage.

Exchange rate remains extremely liquid market. Since it is so big, you can buy or sell in just a few seconds where your trade is only a mouse click away. You can further definition automatically close your position. This means that you should not sit and watch your place, only place the trade, set out and go as you like.

Forex trades virtually 24 hours a day, 7 days a week. It only closes from Friday afternoon until Sunday evening. This makes it viable to set your own hours trading. If you trade part-time and tend to place your trades in 03:00, log into your account and trade. If you are a sole full-time, the same applies. No other market lets you choose the hours trade.

There is no charge commission on foreign exchange rate, only a small transaction fee. This is not doable in any other market, brokers charge a commission for each transaction in all other markets.

Since currencies are traded in pairs, so that buying and selling one currency to another. For example, if an investor believes that the U.S. dollar will advance against the euro, which will buy the U.S. dollar and sell Euro. It's just that simple.

The possibility of profit is good, as there always movement between currencies. Even a small change can result in significant profits because of the large amount of money involved in the transaction.

Initially and foremost, just prior to open an account and blindly making a few trades, you need proper training. Study the market, understand the terms used in trade, set up a sample account with a currency broker. Then, and only then, work with real money to trade.

The eToro we are for you to learn and start a successful Forex Market Account