FOREX MARKET, FOREX TRADING

The Forex Exchange was established in 1971. This market grew at a steady rate during the 1970's, but in the 1980's Forex grew from trading $70 billion for every day to over $1.5 trillion every day.

There are many big players in Forex, but it is friendly to the individual trader. Every lot traded is worth approximately Rs.100,000. By using leverage, an individual trader is only required to have a $1000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage.

Forex is furthermore an exceptionally liquid market. For the reason that it is so big, you can buy or sell in only seconds where your trade is only a mouse click away. You can furthermore preset an automatic close for your place. This means you don't have to sit and watch your spot, solely place the trade, set an exit point and go what you want.

Forex trades practically 24 hours, 7 days a week. It only closes from Friday afternoon until Sunday evening. This makes it viable to set your own trading hours. If you trade part time and aspire to place your trade at 3am, log into your account and trade. If you are a full time trader, the same applies. No other market lets you pick the hours you trade.

Here are no commissions charged on Forex, only a small transaction fee. This is not doable in any other market, as brokers charge a commission on each trade in all other markets.

Since currencies are traded in pairs, so you are purchasing one currency and selling the other. For instance, if an investor believes the US dollar will advance against the euro, you would purchase the US dollar and sell the euro. It's just that simple.

The possibility for profit is good as there is constant movement among currencies. Even a small change can outcome in significant profits because of the large amount of money invested in the transaction.

Initially, previous to just opening an account and blindly making a few trades, you need proper training. Study the market, understand the terms used in trading, set up a sample account with a currency broker. Then, and only then, work with real money to trade.