Everything you need to know about Forex trading

FOREX- FOReignEXchange(FX) market is the biggest and the most liquid financial market on the world, with daily traffic from about  5.300 milliard dollars.

Just for comparison, New York stock market has a daily traffic from “only” 25 milliard dollars.

According to business magazine Forbes, one fourth of world’s billionaires has earned money on Forex, where there is no physical exchange of currencies, but the trading is based on selling and buying foreign currency pairs such as EURUSD, CHFGBP, AUDJPY, etc. You can buy one currency from pair, and other simultaneously sell. Over 85% of daily traffic is based on 7 great world’s currencies.

Forex market is decentralized, where there is no unique place for trading, or central organ that is controlling activities or participants. It is inter-bank market, because it is based on electronic way through banking net of mayor worlds financials centers 24 hours daily, 5 days in week (from Sunday 23:00, till Friday 22:00).

That is very practical for participants, because they can register in time most suitable to them, and can react on currency changes immediately, for difference of other financial markets.

Some other advantages of Forex market are:

-There is no commission, only compensation is “spread”, i.e. difference between buying and selling exchange rate.

-There is no intermediators, you trade directly with market that is only responsible for the value of every currency pair.

Trading on Forex market is much more flexible, than other financial market, but for long term participants, there is some discipline that they need to comply with.

This is shortly everything someone needs to know generally about Forex to  get into trading.

Next post is for those who are intrigued with all this written above, and want to try their luck or knowledge on Forex.