Forex Trading : Like trading into stocks and commodities the Forex Trading does exist as well. The trade is carried out by brokers of Foreign Exchange – these exchanges are called the trading platform. These platform trades between a pair of two currencies, those are widely accepted across the globe. Say for instance, it is a trade between British Sterling Pound and American Dollar (BSP/USD); likewise EUR/USD; JPY/USD and so on.
It is an interesting Investment Game. Though, the trade exists since ages, it has gained popularity with mushrooming of Forex Traders / Advisors, all over the globe. The activity is more popular in Europe with thousands of operators providing Guidelines; Training. There are most intricate Software and Trading platforms as well. These are the attributes of ever increasing internet usage with an updated technology. This technology is practically updated / upgraded on day-to-day basis.
The Forex Trading is highly speculative it can make you millionaire OR can even take away your millions within few trades itself. Thus one has to have a thorough knowledge of all factors such as economic situation world wide, political activities taking place globally, the country needs more of international acceptable currency to carry out its affair to its expectations.
How the trade takes place: There are two components that go into trading the ASK price (the buying rate) AND BID price (the selling rate). These prices are always marginally HIGHER OR LOWER than the market rate and are called the SPREAD. (The detailed explanation can be found on any of the trading platform.
Trading currency Pairs: USD/CAD EUR/JPY
Top Rated Forex Trading Platforms: MetaTrader 4
FX Trading Station
Internet Currency Trading System
Where is the catch: The currency trade is highly volatile and changes takes place every moment owing to multiple factors like current economic situation, economic status of an individual nation, the political scenario, change in GOLD, CRUDE prices etc. etc..
Thus, to get the benefit in the change of these currencies it is being well accepted as an investment / trading opportunity.
Who can Trade : Anybody from a Company to an Individual.