FOREX is the largest and most liquid trading market in the world. FOREX is considered by many to be the best home business you can venture into. Even though regular people have had the opportunity to participate in forex trading for profit (in the same way that banks and large corporations do) since 1998, it is now becoming the new “thing.” and modern to talk about at parties. , business events and other social gatherings.

Although it has been a little kept secret, more and more investors are turning to the all-electronic world of FOREX trading for income and profit every day due to its many benefits and advantages over traditional trading vehicles such as stocks, bonds and commodities. .

But still, whenever something seems new or is simply becoming part of the social conversation, news articles and water cooler gossip, misconceptions must be overcome, the mind
it has to be open and the board has to be clear to start over with the CORRECT information.

So, in this article, it is my attempt to give you solid, but not too detailed information on what the heck “FX” (FOREX) stands for, what it is, and why it exists.

As one successful trader once said, FOREX trading is like picking up money off the floor. Not trading FOREX is like leaving it there for someone else to pick it up.” Others in the industry
I have also said that trading FOREX is like having an ATM on your own computer.

Here is an explanation (one I think you will appreciate) of what FOREX is and how a group of traders profit from it:

The foreign exchange market, also called the “FOREX” or “FX” market, is the spot (cash) market for foreign exchange.

But don’t confuse FX with trading the futures market, where you buy a contract to buy a particular currency at a future price over time.

What FX traders do is much less risky than trading currencies in the futures market, much more profitable, and much easier than trading stocks.

So you’re probably wondering where you are… or… how to access the forex market?

The answer is: FX Trading is not tied to any trading floor and is not centralized on an exchange, as is the case with the stock and futures markets. The Forex market is considered an over-the-counter (OTC) or ‘interbank’ market, due to the fact that the entire market is executed electronically, within a network of banks, continuously for a 24-hour period.

Yes, if this is your first time hearing about a fully electronic marketplace, I know this may sound intriguing.

This is what you are actually trading when you participate in the foreign exchange (FOREX) market:

Essentially, just like the big banks that use the forex market to protect themselves from the fluctuating exchange rates of different currencies, as an investor what a forex trader does is
simultaneously exchanging the currency of one country for that of another. So in reality, they are electronically trading a currency pair and the price quoted to us is the exchange rate.
between the two currencies.

In other words, simply the quoted price is how much of one currency is worth 1 of the other currency.

Example:

EUR/USD last trade 1.2850: one euro is worth $1.2850 US dollars.

FOREX has a DAILY trading volume of around $1.5 trillion dollars, 30 times greater than the combined volume of all US stock markets. This means that 1,498,574 qualified traders could each get $1 million out of the FOREX market every day and FOREX would still have more money left than the New York Stock Exchange every day!

FOREX plays a vital role in the world economy and there will always be a great need for FOREX. International trade increases as technology and communications increase. As long as there is international trade, there will be a FOREX market. The foreign exchange market has to exist for a country like Japan to be able to sell products in the United States and to be able to receive Japanese yen in exchange for US dollars.

There is a lot of money to be made using FOREX for many traders using the right trading techniques/tactics that will allow them to make huge profits. And, with only 5% of daily volume billing coming from banks, governments and large corporations that need coverage, the other 95% is for speculation and profit.

[http://www.1-forex.com/]