What is Forex ?
What is Forex Trading?
What is Forex ? The Forex (Foreign Exchange) Signal Market is the largest market in the Financial world. It is the market where currencies are traded every milisecond. Each day, more than 5 trillion dollars are exchanged globally by individuals and Corporations.. What is Forex ?
WHAT IS AN EXCHANGE RATE?
Forex, also known as fx exchange, FX or currency forex trading, is a decentralized worldwide fx market whereby all the world’s currencies are traded. The forex market is the biggest, most liquid, volatile market in the world with an average daily forex trading volume exceeding $5.11 trillion USD ( growing by day ). There is NO central exchange as it trades over the counter. Forex ( Signals ) trading allows you to buy and sell currencies at specific prices seen on the Fx Trading platform offered to you by your chosen forex broker, similar to stock trading except you can do it 24 hours a day, five days a week, moday – friday. You have access to margin fx trading, and you gain exposure to international fx markets. What is Forex .
Why Trade Forex?
24 HOUR MARKET 5 DAYS A WEEK
The Forex market is open 24 hours a day, 5 days per week, Monday – Friday, so that you can be right there forex trading whenever you hear a financial scoop.i.e: FxPremiere Forex Signals. What is Forex .
WHAT AM I DOING WHEN I TRADE FOREX ( FX Signals ) ?
Forex is a commonly known as “foreign exchange”, and it is typically used to describe trading in the foreign exchange market by speculators worldwide.
WHY DO EXCHANGE RATES CHANGE ?
Forex Signals | Currencies trade on an open market, just like bonds, and many other services. A FX currency’s value fluctuates as its supply and demand fluctuates, just like anything else.
- An increase in supply / decrease in demand for a currency can cause the value of that currency to drop.
- A decrease in the supply or an increase in demand for a currency can will affect the value of that currency to rise in Forex prices.
How Do You Read A Forex Quote?
As you are always comparing one currency to another, fx is quoted in currency pairs. This may seem confusing at first, but it is actually pretty simple. For example, EUR/USD at 1.4011 shows how much one euro (EUR) is worth in U.S. dollars index (USD).
Basic Forex Signals terms
Listed below are some of the key terms used in Forex Trading and CFD.
A Pip is the ” Percentage In Point ” ( PIP ), also referred to as ” Point “. It is equal to the minimum price increase of a Forex trading rate. The most common Pip is 0.0001.
The ask price is the price you can ( purchase ) buy a currency at. It is also the price at which the market is willing to sell the currency to you.
The bid price is the price you can (purchase) sell a currency at. The forex market is willing / obliged to pay you this price for this particular currency given after a spread from the liquidator is processed.
Spread are the difference between bid price and ask price given by your broker price on the forex trading platform.
A currency rate against another currency rate. i.e: EUR/USD.
What Is A Lot?
A lot is the smallest trade size available. Fx Broker accounts have a standard lot size of 1,000 units of currency. Account holders can, however, place trades of different sizes, as long as they are in increments of 1,000 units like 2,000; 3,000; 15,000; etc.
Forex is a $5.11 trillion a day FX market, with most trading a few currencies, therefore there is always a lot of spectators trading the forex market. This makes it typically very easy to get into and / out of forex trades at any given time, even in large liquidity sizes.
FOREX NEVER SLEEPS
Forex Trading goes on all around the world during different countries’ business hours. You can trade major currencies at any time, 24 hours per day, 5 days per week. Since there are no set exchange hours, it means that there is also something happening at almost any time of the day or night.
GO LONG OR SHORT
Unlike many other FX markets, where it can be difficult to sell short, there are no limitations on shorting currencies. If you think a currency will rise , buy it. If you think it will drop, sell it. Simple!
Due to the deep liquidity available in the fx market, you can trade fx industry with considerable leverage ( up to 50:1 ). This can allow you to trade even the fraction of moves in the forex market. Leverage is a double edged tool, as it can be a major increase upon your losses as well as your profits.
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