About Foreign Exchange Market
Forex stands for foreign exchange market. It works on principle “buy cheap, sell expensive” just like other markets. Traders exchange one currency for another, making a profit on the difference in exchange rates.
In the foreign exchange market, there are always market participants, which continuously carry out the transactions. Thanks to this, you can open/close a trading position at a market price at any time.
Forex is an “over-the-counter market”, it doesn’t have an established location. The trading process is automated, traders execute orders through the special trading platforms. You can open buy/sell positions anywhere. Developers take into account the needs and possibilities of traders and offer different versions of platforms: desktop, mobile apps, and browser-based.
A certain number of participants form the structure of the foreign exchange market, ranging from the central and commercial banks to individuals. All market participants have its own goals, whether hedging, regulating or speculative.
How to Trade On Forex?
Forex allows trading many currencies. There are more than 70 currency pairs, they are always traded in pairs. If you buy one currency, you sell another one and vice versa. For example, the GBP/USD currency pair where GBP is a base currency and USD is a quoted one. That means a trader buys GBP and pays for it in USD.
Majors are the most traded currencies: EUR/USD, GBP/USD, USD/JPY, USD/CAD. The share of all transactions with currency majors accounts for more than 80%. Traders get the best opportunities while trading them.
Forex trading is carried out using lots. The standard size for a lot is 100 000 base currencies. To trade successfully on Forex a trader needs a reliable and trusted broker who can offer a leverage, a tool that allows you to trade a sum of money which exceeds your deposit several times. So, if the broker offers leverage of 1:100, then the trader can make a transaction of 10 000 USD having only 100 USD of own funds.
What Do You Need for a Successful Start in the Forex Market
For beginners, it is recommended start trading with a demo account. Such accounts are good training instrument, which allows you to practice trading skills and fully experience the features of real trading, without risk. Most demo accounts are based on the trading conditions of their prototypes and have identical execution, so each trader gets the same quotes of financial instruments and the opportunity to familiarize themselves with constantly fluctuating prices. Their main difference is the use of virtual money, all profits and losses are also virtual, respectively. Here you can find more information about Forex accounts.
Having worked on demo accounts, you can open a real account. But do not forget that working on real accounts involves more self-control and discipline. In order emotions do not interfere with trading, the trader must clearly and accurately follow the rules of his trading system and money management rules.
Trading Benefits With JustForex:
- The company is licensed to conduct brokerage activities and is regulated by the Belize International Financial Services Commission (License No. IFSC/60/241/TS/17).
- Orders are executed at the best prices of the leading liquidity providers. 18 largest world banks provide the company’s liquidity.
- JustForex uses segregated accounts for keeping clients’ funds.
- The company ensures the safety of information using a secure SSL connection with encryption.
YOU CAN START YOUR SUCCESSFUL WAY HERE.