What is “Forex Trading”

Forex trading is an activity or even a profession open to anyone who has a computer and access to the Internet. However, not everyone knows what Forex trading really is. • The term trade or change is declared as such. It is a market where one product is exchanged for another. You can trade with many instruments: commodities, indices, stocks. • The term Forex refers to the marketplace where some currencies are exchanged for others and other types of financial instruments. Forex trading is a kind of daily and international trade. States, corporations, even individuals, like you, trade in currencies every day. This trade takes place via computer networks between traders around the world. This is the main reason why the Forex or Forex market is the largest and most liquid market in the world, the most accessible, and consequently the one that is considered to be the most dangerous and worst in the world.

 

How the forex market came about  The rise of the Forex market was thanks:• accelerated economic growth•              technological advances• InternetOne of the biggest achievements of the digital age is the virtualization of money. If the printed money allowed people to transfer funds through a simple ticket, information technology or the Internet made this process as easy as pressing a button or touching a screen.
n the 1990s, this technology was recognized as a great opportunity and businesses were created that allowed access to the foreign exchange market and leverage accounts. These companies have become known as forex brokers and it is thanks to them that at present, anyone who has only 10 euros in their pockets and has an online platform can try their luck or their skills in the market.

Forex Trading in der Praxis

The general logic is simple. The trader or operator of this market buys something when he believes it gains value or sells it if he believes it is losing value. For example, imagine that the euro is today worth 1.2345 euros. Once the market is analyzed, the trader expects this value to rise over the next 24 hours. Open a purchase today and wait. The next day the Euro is worth 1.2395 Euro and the trader closes the order and secures a profit of 50 pips. How much money does that mean? This depends on the amount of money the trader has invested in this particular operation. The profit could be up to 5000 EUR, as well as 50 000 EUR. However, the deepening in the previous example shows that things are a bit more complicated. Let’s start from the beginning. • After comparing several brokers and their trading accounts, the beginner opens a trading account and makes a deposit.

Leave a Reply

Your email address will not be published. Required fields are marked *