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What
is Forex Trading - An overview
introduction of forex trading
So, What
is Forex? Forex is the short form of foreign exchange. ( Currency
exchange )
An introduction
of Forex market.
What is Forex? Forex market is the market where one currency is
trade for another, it is a largest market in the world with an average
of US$3 Trillion dollars changing hand each day. The main centers
for trading are Sydney, Tokyo, London, Frankfurt and New York. As
such, forex market is a 24-hour market.
Currency trading
is always trade in a currency pair, for instant, the Euro/US dollar,
or the GB pound/Japanese yen. The most commonly traded currencies
are EUR/ USD, USD/JPY, USD/CHF and GBP/USD.
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US
Dollar
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USD
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British
Pound
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GBP
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Euro
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EUR
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Japanese
Yen
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JPY
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Swiss
Franc
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CHF
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Canadian
Dollar
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CAD
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Australian
Dollar
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AUD
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New
Zealand
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NZD
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What
is forex trading? Introduction of Forex Currency symbols
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Currency traders make profits over the small fluctuations in exchange
rates. In the Forex market, you can buy or sell one currency for
another. When you buy a currency, you are said to be "long"
when you sell a currency, you are said to be "short".
For example, in the GBP/USD pair. When you go "long",
mean you buy GBP and sell USD, when you go short, you sell GBP and
buy USD. As the value of one currency rises or falls relative to
another, trader's investments increase or decrease in value accordingly.
Placing a trade in the foreign exchange market is simple. What you
need is to open a trading
account with a reliable broker. You can start trading almost
immediately after the account is up. Beginners are advisable to
observe the traders' rules and read more
books and articles
from experienced traders before getting their hand wet.
Now, we have
an bird-eye view of what Forex trading is. Next, we will move on
to the introduction of forex market. What you need to prepare before
you trade.
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