What is Forex?
Forex or the currency market is the place where over five trillion dollars change hands every day. That’s right, trillion, with a T. That’s a lot of money for one single trading day. Multiply it by five, as Forex is open 24/5, and you have an idea of why this is the largest marketplace in the world. By far!
Also called foreign exchange or FX, this is the place where anyone can make an extra buck. Or, losing it. The beauty of it is that it became accessible to retail traders only recently. Suddenly, people from all over the world and with various backgrounds can speculate on the currency market. Becoming a trader has never been easier. But what is a currency trader?
That’s a person, a regular person like you and me, speculating on the value of a currency. Does the USD seem likely to rise due to Trump’s politics? If you think that, there’s a market to test your knowledge: the currency market. But that’s not enough.On the Forex market, currencies are paired against each other. It’s not enough to know if a currency rises or falls. It’s crucial to know against which other currency it does that.
By definition, traders are speculators. And, the art of speculation is as old as humankind. Until the Internet and the Personal Computer, regular people couldn’t access international financial markets. Times have changed. Anyone can speculate on the value of a currency. And, because almost all countries have their own currency, there’s an amazing potential to profit from their moves.
Traders compare economies against each other. Next, they take a position in the market by selling or buying a currency pair. Obviously, with the aim of making a profit. The bigger, the better. The faster, the better. After all, this is what speculation is: making an easy money as quickly as possible.
So, what is Forex after all?
It is a market full of opportunities. It is huge, fast, and ruthless. You’re either right or wrong and nothing in between. As a Forex trader, you compete with the brightest minds in the world. With quant firms hiring brilliant programmers that build trading algorithms.
With central and commercial banks’ trading departments, Forex brokers and liquidity providers alike. To succeed in this market is infinitely harder than advertised. And yet, so rewarding. With passion, dedication, and hard work, fortunes can be made.
Only several years back, such an opportunity didn’t exist. Selling and buying currencies to make a profit is as exciting and exotic as it sounds. The forex game is now for everyone to enjoy!
Why Trade Forex?
- A 24-hour market – Unlike other markets, trade Forex around the clock
- High Liquidity – Forex Market – 5 trillion daily, Stock Market – 200 billion daily
- Leverage – Enables you to trade more with less
- Low starting Capital – Access for everyone to enter the Forex Market
- Low transaction costs – Compared to other investment opportunities
- Technology – Trade anywhere and anytime from web, mobile and tablets
- Trading Robots – Advantages include risk control, tireless, speed and removes emotion