If you want to make money from currency trading, you have to start and learn forex for beginners. There is a lot of information available online over the internet. I’m going to show you where to start with forex for beginners, and the rest you have to search and study.
Forex or Foreign Exchange Market is the place where the various currencies are bought and sold. Enormous amounts of money are traded daily in the forex market. Over 1.9 trillion US dollars are traded per day and thus makes Forex most liquid financial market on the world. It is not possible for the forex market to be manipulated externally because of the enormous traded volumes.
Forex market is so dynamic and fluid that is just impossible for anyone to influence any currency trading. Because of the sheer liquidity of the forex market, traders are able to open and close positions within seconds. There are always sellers and buyers willing to trade at any time. This is because the world forex centers are opened 24 hours across different time zones.
Let’s look at the basic details you should know about forex for beginners:
How Forex Works
There is no real central place for Forex. Various currencies are traded 5 days a week, 24 hours a day, among major financial centers in New York, London, Tokyo, Sydney Paris, Hong Kong, Singapore, Frankfurt and Zurich. Dealers around the world are always available to quote different currencies.
Marginal trading is like borrowing money for trading or like using a credit card. This stimulates traders to take extra risk and open bigger position with less own money. Marginal trading is traded in lots and 1 lot is equal to 100,000 of unit currency. The margin requires to hold 1% of $100,000 which is equivalent to a personal amount of 1000$, and the rest $99,000 are covered by the broker.
Technical and Fundamental Analysis
Technical analysis studies data accumulated from the currency fluctuations over period of time. According to gathered data can be observed the movements of the currency prices and thus to be made trading decisions. Fundamental analysis estimates various economical or political events like political situation, interest rates, employment, etc. and their influence to the currencies.
If you want to profit from forex trading you need to study the basics and get familiar with forex for beginners.