The Forex Market , which is commonly known as the forex market or simply as Forex (Foreign Exchange Market) is currently the largest and most liquid financial market in the world, with a daily turnover of around $ 3 trillion Of millions), which leaves it well above other financial markets such as securities or commodities.
Forex trading is simply based on buying one currency and selling another. In this case the investor seeks to make money with the rise or fall of the prices of a given currency with respect to the other. In the Forex you can earn both long (buy) and short (sale) positions since the purchase of one currency involves the sale of another and vice versa.
Global currencies are traded through floating exchange rates and are always marketed in pairs, the most popular being to trade the EUR / USD, the GBP / USD and the USD / JPY, ie the currencies of the most Of the planet. However there are dozens and dozens of currency pairs that can be traded, therefore there is a wide variety to choose the investor, however most are limited to the above.
The Forex market as such, started to work in 1971 after they abandoned the fixed currency changes. Unlike the stock markets that operate a few hours a day (the New York Stock Exchange does logically with New York time), the Forex operates 24 hours a day, 5 days a week. This is because at any time, somewhere in the world there are always banks, people and financial institutions buying and selling currencies.
This market involves investors of all types, from individuals to large organisations, central banks, trading companies and brokerage agencies, large and small.
In itself, the Forex market does not operate from a fixed location, although there are very important centers of currency trading located in cities like New York, France, London and Tokyo. At present it is a market that is based more on the use of technology, since it operates mainly through internet or the telephone, which are the most used ways to carry out transactions by both large and small investors.
Buying and selling currencies is a key element in supporting world trade, and as major currencies move against each other, there are and will continue to be opportunities to make money from monetary transactions. This is why, even in times of crisis when other financial markets were depressed for months, the Forex was always in full activity and full of opportunities to make money. And while important players in the market buy and sell in millions of dollars deals, small investors also have a place in the Forex.
The Forex itself is a fairly technical financial market and it takes time to learn the basics and develop the skills needed to use some of the available tools such as technical analysis and fundamental analysis that allow you to operate properly in this market. However learning all these concepts only requires time and dedication.
However, it is not necessary to become an expert to make a profit from these operations. With time and effort it is quite simple to acquire enough understanding of the system to make money trading currencies online. In addition to the technical aspect, a mental preparation is necessary, since in the Forex, psychology is everything, you can master all aspects of market analysis, but if you do not have the right attitude, you will go to disaster.
For many people, the internet is a starting point for learning currency trading. While the Forex market is a fairly risky means of making money, which should be made clear from the outset, it is an excellent opportunity for those looking to increase their profits and even become economically independent.