WHAT IS FOREX TRADING?
Also called FX, Forex is the short term for foreign exchange. It is trading or exchanging of currencies of one country against another. Forex is among the biggest global financial markets for exchanging numerous currencies. It helps international trade and investments through forex deals. Based on the information from the Bank of International Settlements (BIS) in 2016, about $5.1 trillion is the daily FX capacity recorded. There are several various participants in the Forex industry. The majority of members are commercial banks, that’s why currency quotations are set at the interbank market.
Forex market is decentralized, so there’s no physical site to trade. Traders use the internet to monitor the quotes of different currency pairs from several dealers. Financial firms around the globe serves as a bridge between a vast range of distinct varieties of buyers and sellers. To gain access to the interbank currency you’ll need to turn to a Forex broker.
Brokers are firms giving traders access to the market. It offers a trading platform where you view live currency quotes and place orders to trade currencies. And in selecting a broker, heed to the company’s generosity, maturity and regulation.
How much money can one gain in trading Forex?
Several websites claim to double or triple your money every month. But in practice, expert traders recover 20-80% each month, so a profit of 20-30% is both a practical and fair expectation. Bear in mind that currency trading is similar to any investment channel. Having realistic prospects on what to gain is going to make you earn more than thinking to become rich suddenly with just a $50 investment.
What are the risks?
Forex trading is extremely risky. You can only trade with risk money. Meaning, trade with cash you can afford to lose.
On the contrary, there's no need to be worried about the risk. You have to get a fair one, which is capped by possible bonuses, and make efforts to reduce risk.
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