What is Forex?
Forex is a Market of Foreign Exchange. It provides the opportunity to make a profit due to the exchange rate difference. The exchange rate is usually understood as a unit of one currency expressed in units of another. When the demand for any of the currencies falls, it becomes cheaper. Therefore, another monetary unit begins to be in great demand, and its price increases. You can earn both falling prices and growth.
Forex peculiar features
Forex prices are formed by agreement between the bidders, depending on the supply and demand for a particular currency.
Among the many features of the international trading platform can still be identified as the most important:
Functionality. The original purpose of creation-currency exchange. Market relations allow it to be carried out at favorable rates for participants. Subsequently, traders began to use Forex for earnings. Central banks of all countries make currency interventions in this market in order to stabilize the exchange rates of their national monetary units.
The absence of an accurate geographical reference to any local exchange platform. This allows anyone to carry out round-the-clock trading operations from anywhere in the world in the presence of the Internet. Trading is carried out with the help of a special program installed on a computer or other personal devices.
The diverse composition of market participants: majoritarian (Central banks, large commercial and investment institutions), various trading companies, conventional traders.
The geography of the foreign exchange market
Unlike stock and commodity exchanges, Forex does not have a specific trading platform. Regional currency markets act as working platforms for the implementation of Bank transactions. The most significant of them are Asian, European, American, and Pacific. The interaction of the platforms takes place through the latest information technologies.
How to start working on Forex
First of all, choose a reliable, professional broker whose trading conditions would suit you. Professionalism is determined by how successfully and competently the company carries out risk management. After all, if the trader will conduct a sufficiently successful trade, the broker will have to have a sufficient reserve of funds for the implementation of payments and cover the positions of large market participants. The broker must have sufficient time to work in the market and have a decent reputation, and then we can say that the risk management of this broker copes with the tasks.
How to learn to work on Forex
To start taking part in trading on the foreign exchange market, you need to take care of the installation of a trading terminal. Beginners are often recommended to start their activities with demo versions and virtual accounts, where you can practice without risking your own real money. Once you have tested the skills acquired during the training on a demo account, while working in real conditions and in real-time, you will be able to move to real deposits. The only thing is that you should not “get stuck” on demo accounts for too long – only actual trading will allow you to get acquainted with Forex And trading in full measure finally.