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 What is Forex?  



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Author7 Posts
  #1

The foreign currency exchange market is typically known as the forex or FX market. The forex market is the largest capital market in the world with an average daily turnover of more than $5 billion in recent years. To put this in perspective, the U.S. stock market’s daily turnover is only about $260 billion.

Currencies trade in pairs in the forex market. The first currency appearing in a currency pair is called the base currency, while the second currency is called the counter currency. A fundamental characteristic of the forex market is that when you trade a currency pair, you take a position on a rate of exchange or “exchange rate” of a currency pair by agreeing to buy one currency and sell another.

This differs from the stock or commodity markets where you buy or sell a particular asset for currency at a quoted price. Unlike when you trade equities or other assets, taking a position in a currency pair means you are both long one currency and short the other in the pair at the same time.

If you sell the base currency, you’re effectively selling it against the counter currency, while if you buy the base currency, you’re using the counter currency for the purchase. This simplifies trading in the forex market considerably, since there are no stock splits or dividends like you might see in the equity market.

When trading currencies, you do have to take into account the interest rate differential between the currencies if you hold positions overnight or trade for delivery on dates outside the traditional spot value date. The spot value date is 2 business days for most currency pairs. An exception is the U.S. dollar quoted against the Canadian dollar that traditionally trades for delivery value funds, which is 1 business day from the transaction date.

The fundamental elements that most contribute to forex market moves consist of geopolitical events, central bank rate decisions and major economic data releases relevant to a particular currency pair. This typically makes currencies somewhat easier to research than stocks, bonds or commodities.




  #2

I want to add some real facts to your story. The point is that there are many individual traders out there now. People have small assets and strive to secure their future. Gold attracts many (including me). But ordinary transactions can be successful and unsuccessful. It depends on the experience and knowledge of the person. This is why the professionals advise using robot forex. This approach gives you a better chance of catching a good offer.


  #3

Forex is a special platform, where you can earn online.


  #4

Forex trading is a very popular platform for making money. I always try to follow all the guidelines to make it easier, so that is why I decided to use a special application like https://tradersunion.com/brokers/forex/view/fxpro/ where I am following last updates concerning the trading and making money. You need to find a reliable broker, who will be helping with all the questions.


  #5

Trading in the forex market is considered a risky but profitable way to make money. Many newbies are looking for a job related to financial markets, but are hesitant to invest in trading. The advantages of forex trading become clear with experience, so beginners need to weigh the possible pros and cons of trading before opening their first deposit.


  #6

Forex currency trading has many benefits. But in order for your stay on forex to become real you need to choose a broker and use the advantages of forex trading, a trader needs to carefully understand the broker's trading conditions. In particular, opening trades using leverage helps to quickly increase capital, but increases the risks.
RoboMarkets offers excellent conditions for Currency Trading Online https://www.robomarkets.com/forex-trading/assets/forex/
This broker has low spreads, a free demo account and many other benefits.


  #7

Forex is a perfect platform for online money making. Such a solution is a really wonderful option, because you can freely get in touch with professional brokers.





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