What is the Forex Market?
The foreign exchange market, also called the Forex or FX market, is the world’s largest financial market and has a daily transaction volume of $ 3 trillion. Trading in the Forex market consists of buying or selling currencies against other currencies.
- How to Trade in Forex Market?
Transactions in this market are carried out on currency pairs (parities). Investors buy or sell a currency against another currency. The most traded parities in the market are EUR / USD, USD / JPY, GBP / CHF, GBP / USD and USD / CAD. On the basis of the transactions carried out in exchange for the purchase of a currency is the sale of the other currency. Opening a long position on the EUR / USD mean is buying a euro, and in return, selling American dollars. Opening a short position means that you sell Euro and receive an American dollar in return. The fact that the market does not depend on a single center provides an open environment for investors all over the world.
- Does Forex Transactions Involve Risk?
Trading on currencies involves risk, as is the case for other investment instruments. However, keeping the risk factor under control is entirely up to the investor. It will be in your interest to properly understand how and how much your transactions will affect your currency.
- When Forex Market is Open?
The Forex market is open 24 hours a day. The market is opened by Australia on Monday, runs until the closure of the US markets on Friday.
- What are the Similarities / Differences Between the Forex Market and Other Markets?
There are similarities between the foreign exchange market and equity transactions, but the transactions in this market are generally shorter than their share certificates. Due to the interest rate differences between countries, some investors prefer not to carry the spotlight position in order not to pay the rollover costs. If the trading volume of the Forex market is much larger, manipulation effect will be reduced.
- How Long are the Forex Positions Moving?
The answer to this question varies depending on the operation style of the investors. Low risk investors can be more flexible in terms of the time they are able to carry positions without being overwhelmed by excessive price movements. Looking at the market statistics, show that 80% of positions opens less than 7 days. 40% of the transactions are closed in less than 2 days. Investors close their positions when they reach their earnings target or loss stop level.
- How Often Is The Forex Market Being Traded?
The intermediary institutions that provide services in the Forex market do not receive commissions and the market is open all day long. Research shows that the overall average is between ten and twenty.
First Steps to Forex Market
- What should I do to get into the Forex market?
In contrast to other markets, there is not much needing be able to trade in this market (such as a license or a large amount of principal). Nevertheless, it is not true that you start doing business as soon as possible, dive into the market. In order to be successful in this market, you need an agency that will provide you with information, experience and services that are right for you.
- What is the way to learn Forex?
You can find a lot of resources and Forex seminars on the Internet, but you can feel yourself lost between lots of resources. To help you avoid this and to help you reach the most useful information, you can read the Forex training articles.