Learn the Basics of Forex Trading

Learn the Basics of Forex Trading

What is FOREX?

FOREX (FX) is the another short term for Foreign Exchange. It is the market exchange of the different currencies around the world. 

Well, actually, you are already a FOREX trader. Why? It is because when you go to abroad, you will go to the bank and exchange your current currencies to the another currency. You basically kinda been away participating in the FOREX market. What you are doing is essentially the core of what happens in the FOREX market.

For example, if we wanted to trade from Euro to Dollars or EUR/USD, then this format EUR/USD, the euro is the base currency and the US dollar is the counter currency. When you buy 1 euro, in exchange, you will have 1.12 US dollar. 

Where can you trade?
You can trade FOREX via online forex sites like Optionsxpress, Oanda, and FOREX.com

When can you trade?
You can trade 24 hours a day, 5 days a week except Saturday and Sunday.

What are the risks?

• You can lose more than your initial deposit.
• Forex trading, like any form of trading, is too risky.
• Some may even suggest that trading in the forex market actually carries above-average risk.
• The one rule you must hold above all else is to trade only using your extra money.
• In other words, never trade more than you can afford to lose.

Make sure that you are equipped with advanced knowledge and learned the technical analysis when you want to trade in FOREX market.