What is the essence of the Forex market?
Forex (FOReign EXchange - "foreign exchange") is a global financial market that emerged in the early seventies of the 20th century as a result of the transition from fixed to floating exchange rates. The emergence of such a market has become vital for ensuring the movement of capital between countries, as well as for the functioning of the world economy as a whole.
Forex is not a " market” in the usual sense. It does not have a single center, as well as a physical place of trade, which makes it possible for anyone to carry out currency transactions from anywhere in the world.
Fluctuations in exchange rates allow for speculative trading, which is a source of potentially high income for market participants. Simply put, if you bought 100 euros for $ 1.2 today and sold them for $ 1.4 the next day, the net profit will be $ 20.
The main function of Forex is a free exchange of currencies that suits both parties.
How does Forex trading work?
In order to start trading, you do not need special equipment or special education. Many believe that trading in the currency market is very difficult, some believe that it resembles gambling. However, both are wrong.
Forex trading is a strict system based on the principles of fundamental and technical analysis of the market. The development of computer technologies and the Internet makes it possible for anyone who wants to earn money at home, using the computing power of a computer and their own analytical abilities. For successful trading, you do not need a deep knowledge of higher mathematics or economic theory - just a high school course.
Technologically, the essence of Forex trading is as follows: you install a special program on your PC (such as MetaTrader 4, Libertex, etc.), which initially contains all the mathematical algorithms, make the desired Deposit and start trading. The task of a Forex trader is to monitor the offers of the program itself and make decisions.
A common misconception is that Forex earnings require investments of about several thousand dollars. However, professionals believe that for a successful start, if you have a Forex strategy, just $ 10 is enough.
Moreover, if You do not want to risk your finances at all, or want to practice trading, you can open a demo account and start trading.
The Advantages Of Forex
Let's list the main theses that reveal the essence of Forex:
potentially high returns – many traders have learned to extract huge profits from trading, thereby saving and increasing their own savings;
unlike stock markets, Forex trading does not depend on the Forex market trend. Simply put, you can profit from both currency appreciation and depreciation;
regardless of location-you can trade Forex from anywhere in the world where there is an Internet connection;
round-the-clock availability of trade.
Thus, Forex is open to everyone who feels the strength and opportunities for successful trading!