It is possible to learn Forex currency trading online as there are plenty of resources available as well as tutorials on how to trade and what to pay attention on. Forex stands for foreign exchange market and this is the largest trading market in the world. Originally Forex trading was not available to everyone as only large financial institutes would trade by calling on the phone.
The Forex market is much different from the stock markets as instead of buying and selling stock you are trading off of the changes in currency. Basically trades occur on credit agreements as there are no houses or governing bodies to guarantee trades. This market is considered the largest liquid market of them all.
A trade occurs when you are looking at a specific currency pair such as USD and EUR. You will buy an amount of Euros using US dollars. Than when the currency exchange increases you will sell the Euros for USD and make a profit. The exchange rates can change quickly and there are many things that affect currency values, specifically politics.
There are many benefits to using the Forex market as this market is always open at all hours of the day and most firms and Forex platforms will not charge you a commission when you make a trade.
You also do not need to worry about sorting through thousands of stocks but can focus on one or two specific currency pairs. You also do not need a large investment to get started in the Forex market.
The main disadvantage to trading on the Forex market is that there are very high risks associated with the trading. Always make sure you can afford to lose the money you are trading with and determine how much risk you are willing to take. - 2364
The Forex market is much different from the stock markets as instead of buying and selling stock you are trading off of the changes in currency. Basically trades occur on credit agreements as there are no houses or governing bodies to guarantee trades. This market is considered the largest liquid market of them all.
A trade occurs when you are looking at a specific currency pair such as USD and EUR. You will buy an amount of Euros using US dollars. Than when the currency exchange increases you will sell the Euros for USD and make a profit. The exchange rates can change quickly and there are many things that affect currency values, specifically politics.
There are many benefits to using the Forex market as this market is always open at all hours of the day and most firms and Forex platforms will not charge you a commission when you make a trade.
You also do not need to worry about sorting through thousands of stocks but can focus on one or two specific currency pairs. You also do not need a large investment to get started in the Forex market.
The main disadvantage to trading on the Forex market is that there are very high risks associated with the trading. Always make sure you can afford to lose the money you are trading with and determine how much risk you are willing to take. - 2364
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