Forex comes from the words Foreign Exchange. The market is the biggest market in the world open 24 hours every business day and with a volume of $1.5 trillion every day. The market is a cash market called also spot market and is established in 1971.
This market is the most dynamic developing market in the world already broadly popular and except the banks and the big organizations, there could be trade and individual traders with capital of only USD 200. Historically this market was a market of the banks only and it was not available for small speculators. At the moment on the market is possible to buy and sell small lots (units) 24 hours a day every business day.
All the time there are buyers and sellers, so the problem to finding the buyers and sellers are not actual. The statistic shows that 70% of the profits on the market realized the international banks trading with billions and the big speculators like G. Soros.
But by the small traders and speculators, only 5% success on the market and realize a profit. That is because the new traders without long experience and good acknowledgements do not use the very important rules and also they have not the base for the trading they do not know the secrets of the forex trading.
Our online education lessons will learn you all secrets to be among the 5% successive traders and the forex to start to bring you good and consistent incomes trading at home.
The forex market is so large that no one could control the market. Even the biggest banks are not so strong to control the market. The main players are the central banks, but they have to unite and make the same strategy with other banks to control the market for a short time only. It is necessary tens of billions of dollars to make little 15-20 pips movements on the market. To start forex trading, read the Options to Start Trading Online and Rules.
The other markets daily volumes are the following: For the US Treasury Bond Market $300 billion and for US stock markets is $100 billion. The forex market daily volume is average $1.5 trillion.
The most important step to stay in the forex market so many accessible is the Internet and the possibility to trade with small amounts. Also the providing of live quotes and “bid” and “ask” quotes delivered to all network-connected computer in real time.
The advantages of the forex market are the following:
Liquidity: In the forex market there is always a buyer and a seller! The FOREX absorbs trading volumes and per trade sizes which dwarfs the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggests the freedom to open or close a position at will 24 hours a day.
The high returns investment market, where for a few hours professional traders could double the investing sum.
Access: The market is open every business day starting about midnight CET on Monday (6:00 PM Sunday EST) and closing on Friday at 11:00 PM CET (4:00 PM EST).
Forex Centres: There are few places in the world where are talking about forex centres. These are New York – Wall Street, London, Tokyo, Frankfurt and others.
The main currency crosses: The trading is in pair and there are four main currency pairs, plus to add main pairs. All rest pairs are less trading on the market. The four main currency pairs are; EUR/USD, USD/JPY, GBP/USD and USD/CHF. The other two main pairs are USD/CAD and USD/AUD.
The profit: The forex market allows taking profit by rising and falling currency value. The traders could buy and sell currency at any time of all kinds of pairs.
Leverage: The forex trading is in lots. The traders could buy and sell only lots. One lot is approximately $ 100 000. The mini lots are average $ 10 000. To trade with one lot of $ 100 000 is not necessary to possess $ 100 000 are necessary only $ 1000. The other 99% you take as load by the brokerage company. This is called margin.
Margin: Margin is difference among the brokerage companies. Usual the margin is 1:100. It means as the example above that with $ 1 you could control 100 times more value and $ 100. So for a margin of 1:100 with $1000 investing you will have one lot of $ 100 000. If the trading reaches to the time when by these 1 lot $100 000 you lose $ 1000 then the trading finished for you and you lose all $ 1000.
Confirmation: The trading confirmation is immediately. Buy and sell currency pairs for a few seconds and the confirmation to buy come only by one clicking with the mouse. You can trade and via phone talking with the brokers.
The commissions: The most trading companies do not take commissions. Their commission comes from the spread. The spread is the difference between the “bid” and “ask” price. Usually the spread is between 2 and 5 pips.