Forex Trading is trading currencies from different countries with each other. Forex is short for Foreign Exchange (currency of exchange). An example of a forex trade is to buy the Euro (European currency), while simultaneously selling USD (American currency), can be abbreviated as EUR / USD.
Forex Market
Unlike the traditional market, because here who traded currencies are the market (where the merchants / traders buying and selling) is called the forex market. Who are the perpetrators of this forex market? very diverse: can a bank (main), large corporations, countries, institutions, speculators, etc..
Given the scope and the culprit is global / worldwide, market / forex trading this looks to be very interesting, why? Because it makes the forex market became the largest money market (4T $ / day), and very liquid (can buy and sell with such rate in the market regardless of the amount). Plus, this makes the forex market is open 24 non-stop, so that we can trade anytime, we adjust our spare time.
Unlike traditional markets, the forex market has no physical location in particular, almost the majority now of Commerce, this is done through an electronic network. So the transaction process can happen quickly and in large quantities anyway. With the development of internet technology (electronics) it will be very easy for new individuals to trade forex online.
The purpose of Forex Trading
Market conditions and the price moves in the forex market is very dynamic, it can change at any time quickly, in response to events both economic events, politics, war, disaster, etc. Especially for countries with advanced economies and strong, there is little sensitive information, then the price of its currency could move up and down.
This is seen by traders as an opportunity and a chance to make the trade. So simple forex trading goal is to achieve a profit or gain of magnitude.
Forex Trading Opportunities
Internet has made a lot of revolution in world trade, as well as a very strong influence in the world of forex trading. With the internet, it is now the forex can be done by anyone. If the first can only be done by big players (banks, state, institutional) now, with more and more popping and online retail forex broker, you and I can trade forex online with ease and with a small capital. Even to try trading with simulation is also very easy that is by trading with a demo account facility of the broker.
Forex risk
Forex like a double-edged sword. With forex can make us rich quick, but the reverse can also instantly mengikikis depleted our capital. Do you consider forex as an investment or as a regular trade, forex obvious risk factors eminence. So understand completely the risks in forex and do not let one step.
