The word “Forex” stands for foreign exchange. Forex Trading is the largest financial market in the world. In a Forex trade, you buy a certain amount of one currency in exchange for a different amount of another currency, you exchange one currency for another. Therefore foreign currency exchange happens in pairs, for example dollar/euro, yen/dollar, shekels/euros and so on. All transactions for Forex trading happen by phone or by electronic network meaning the internet. The biggest clients using forex trading are banks and other official institutions. The minimum amount that you have to have in order to enter the Forex trading is $300 USD and a Forex trading of this minimum amount is called a “mini account”, so practically anyone can do this and enter the world of Forex trading. Forex trading therefore is a very exciting very affordable and is open for everyone who just dares to enter it.
Online Forex trading is Forex trading over the Internet. One of the advantages of online forex trading is the 24 hours 5 days a week availability which makes it easier for the person wanting to trade currency at any given time to do so . In order to start online trading one has to choose an online broker through whom they will do their dealings. A forex dealer or broker is a person that provides hid Forex trading expertise via the net or in other words he provide online Fores trading advice to the customers, and by that help them try and predict the change in the rates of currency trading, which is in constant change in Forex trading. There are very harsh regulations under which Forex Dealer members are regulated.
They are held to the most strict and highest ethical and business standards and are regulated by both the CFTC and National Futures Association in the United States, as well as by national and local regulatory bodies where they conduct business, and are held to strict business and ethical standards.Many companies provide online trading software that helps predict the changes in currency rates giving an indicator to the trader what to buy and when to buy it.
There are many forex online strategies that are designed to help in forex online trading and maximize one’s profits. One of the most popular strategy is called Leverage. It is intended to permit online currency traders the benefit of more funds than are actually offered or put down. Another strategy is the stop loss order which is used to guard investors, by generating a pre arranged point which the broker do not cross, in other words it is a point at which they stop allowing them to reduce their loss.
The Currency trading market is a true 24-hour market it is open from Sunday al five PM till Friday al five PM, forex trading or currency trading begins in Sydney, and moves around the world as the business day begins, first to Tokyo, then to London, and afterwards it goes to New York.
Unlike other financial markets, investors can respond immediately to any changes in currency rates, whenever they occur – day or night. When trading currency one should buy the currency that has a value expected to rise in relationship to the currency sold. So when the currency is sold again it can gain a profit to the person dealing it. There are many factors that can affect the currency rates, and by that affect the currency trading. Some examples of the elements that affect changes in currency trading are the following: natural disasters, politics, war, economic changes and so on. Currencies are traded directly in a forex market and the minimum amount that can be traded is known as a lot, which is at least 25,000 dollars generally.
But with the increase of the money invested comes an increase of the money earned. The currency trading market is a fairly safe market especially for the persons who want to have big gains. With a little assistance from a broker you can be on your way to double or even triple your investment. Playing safe can earn you money, then currency trading is the best place to start.
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