Forex Introduction
Forex
The Currency trading market is the biggest and fastest growing market on the earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds and private individuals like you.
Markets are places where goodare trades, and the same goes with Foex. In forex markets, the 'good' are the currencies of various countries (as well as gold and silver). For example, you might buy euro with Rupees, or might sell japanese Yen for Canadian dollars. It's as basic as trading currency for another.
Some Basics:
Leverage: The ratio of investment to actual value of called "Leverage". Using a $1,000 to by forex contract with a $ 100,000 value is "leveraging" at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
Profit: Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased. Forex trading does not required physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs. The advantageous thing about the Forex market is that regular daily fluctuations - in the regular currency exchange markets, often around 1% - are multiplied by 100
Risk: You cannot lose more than your initial investment ( also called your margin). The profit you may make is unlimited, but you can never lose more than the margin. You are strongly advised to never risk nore than you can afford to lose.
The Currency trading market is the biggest and fastest growing market on the earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds and private individuals like you.
Markets are places where goodare trades, and the same goes with Foex. In forex markets, the 'good' are the currencies of various countries (as well as gold and silver). For example, you might buy euro with Rupees, or might sell japanese Yen for Canadian dollars. It's as basic as trading currency for another.
Some Basics:
Leverage: The ratio of investment to actual value of called "Leverage". Using a $1,000 to by forex contract with a $ 100,000 value is "leveraging" at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
Profit: Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased. Forex trading does not required physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs. The advantageous thing about the Forex market is that regular daily fluctuations - in the regular currency exchange markets, often around 1% - are multiplied by 100
Risk: You cannot lose more than your initial investment ( also called your margin). The profit you may make is unlimited, but you can never lose more than the margin. You are strongly advised to never risk nore than you can afford to lose.
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