WallingRobertson259
What Is Forex? Quick tips Into the Realm of Currencies
So let's get started! What is Forex?
Forex is short for for Foreign currency. The foreign currency is a currency market where currencies are traded. It represents the biggest financial market in the world with daily trading volume exceeding $4 trillion. Just to compare, other real estate markets such as equities at $50 billion daily trading volume, and also the futures market at $30 billion in daily volume you can start to realize the size of the animal and more importantly the infinite trading opportunities that lie before you!
The Forex market is a 24 hour market running from Monday morning in Tokyo to Friday evening in New York - non-stop action around the world! This differs vastly in the other financial markets (like stock markets and commodities exchanges) which open at the beginning of and close after their trading day. They are directly tied to the time zone they are in which means they are much harder to trade. So for example, for somebody residing in Australia, when they desired to trade the US stock market they would need to be up all night to do this because of the time difference. You will have no such problems in Forex! You are able to trade anytime, anytime you like. Obviously, the very best times to trade are when the biggest financial markets are open - that is the US and European markets - as the biggest players are to play and liquidity reaches its highest.
The players that come into this market vary significantly, its possibly the only marketplace where you can find traders with $500 accounts trading against big players (and winning!) such as hedge funds, large banks, corporations and governments!
OK so I recieve what Forex is, but explain Forex Trading!
Essentially, Forex currency trading means exchanging once currency with another, for any period of time, for any profit. Within this business (yes it's a business) you're basically speculating that, for several reasons, you expect that the currency goes up or down in relation to another currency and you're willing to bet a certain amount of your capital to learn from that idea. For example, you could expect the Euro to go up from the US Dollar, so you buy Euro's then sell US Dollars. When the Euro actually goes up, you can sell the Euro's, buy US Dollars and take your profit.
Fundamental economic news and political situations play a huge role in the fluctuation in worth of a currency for any given country. I will be starting a lot more detail relating to this in the Fundamental vs Technical trading article which you'll be posting in this series!
