You’ve heard about other people making a full time income from investing in the Forex but you’re not sure if it is for you. If you’re in this position, we’ll take you on a quick tour of the concept of Forex foreign exchange rates, the benefits and the risk involved.
The forex market orbits around the buying and selling of money — specifically the various stock markets around the globe. The market is huge. To give you an idea of its size, the actual traded in is 3 x that of the currency markets and futures market combined.
When you begin trading the Forex you simultaneously buy one currency and sell another currency. A Forex quote will appear similar to USD/EUR = 1. 2. This can occasionally be a bit daunting to the beginner, but it essentially means that one US dollar can be sold for 1. 2 Euros. The 2 stock markets listed are known as currency twos, and there are various twos that are commonly estimated including USD/GBP (US dollar and British Pound), USD/CAD (US dollar and Canadian dollar), and USD/JAY (US dollar and Japanese people Yen). อัตราแลกเปลี่ยน
Trading the Forex has a number of benefits over the currency markets. The first of these is the ability to trade a day. Unlike the currency markets, there is no physical location that the Forex is traded in from. It is a global trading network that runs continuously. This means that you can trade at a time to suit you even if you have other responsibilities in your life.
Another benefit is the ability to be able to use leverage. This allows you to control large amounts of money using only limited funds. If you have a dealer that enables you 200: 1 leverage, you can control $20, 000 with only $100 of your money. This means that you can increase your profits many-fold. But the downside is that if you do not correctly predict the market, your subsequent losses will also be more achieable. Using leverage wisely is something that accompany experience.
A way to build up your experience with Forex is to trade a demonstration account first. This is a facility that is offered by many of the online Forex brokers. You get a merchant account with ‘virtual money’ in it. You can then start trading without anxiety about losing any a real income. You’ll get to feel safe using the trading software and you can even test out trading systems to see if they actually work.
There is a wealth of information available on the internet about Forex trading. A lot of it is free. It is advisable that you begin by getting a knowledge of the basics such as Forex foreign exchange rates, pips, trading signals and trading software. Then if you want to take things further, you can look into buying a trading course.