What is Forex, how is it work & make money ?
Forex Trading has become much easier and there are a lots people who have been making money through Forex. Now day Forex holds the largest and most liquid financial market all over the world with a daily trading volume of over $3.2 trillion, which dwarfs that of the NYSE (New York Stock Exchange). This amount still increases and I guess you are interested to enter Forex trade market or you are already started, because you are here reading this article. I’m sure this article make a clear sense to all about Forex trade-trend, will help you to know Forex market, the basics of currency trading. You also find some good idea, tips and tricks to earn money through Forex.
What is Forex and how is it work – is a question that many people ask. Lets we know answer first: Forex is acronym of Foreign Exchange (Foreign Currency Exchange), because it’s simultaneous purchase, sale or exchange of the one country’s currency for the one of another country’s currency. So we can tell from our simple sense that Forex or FX is the knowledge and business of making money through high-and-low money exchange math, system or technique; based on currencies exchange rate fluctuations.
(The world currencies do not have a fixed exchange rate and are always fluctuating, depending on country’s inner and outer communication, economic waves and political interaction.) For example:
Suppose you’re an American visiting Japan, you’ve sold dollars and bought yen. Again, before you fly back home, you stop by...
You will see Forex Investments usually deal with 4 major pairs, called “currency pairs” that dominate the percentage of trades. Those four are the USD vs British Pound, Euro vs USD, USD vs YEN and USD vs Swiss Franc
I hope you have got the answer for the question of what is the Forex and how is it work. Now I want to focus shortly on how could you make money and profit through Forex : Think buying a currency work as buying a share in a particular country, kinda like buying stocks of a company. Because the price of the currency is a direct reflection of what the market thinks about the current and future health of the related county’s economy. Suppose, say, you have buying the Japanese yen, you are basically buying a “share” in the Japanese economy. You are betting that the Japanese economy is doing well, and will even get better as time goes. Once you sell those “shares” back to the market, hopefully, you will end up with a profit. Forex is about make money to buy low and sell high. For example, If you buy Euros against USD when each Euros is equal to $1.3554USD and then sell it when it is $1.4035USD, you have made a profit. It’s Easy!!! Just find a good brokerage company, sign up with them; that enable you to buy and sell different currencies through the Internet and some simple software. You can make money from anywhere in the world. You can be independent from routine and not answer to anybody.
You are excited and might don’t want delays to start trade and make money but…..What to do first? Where to start? How you can find out a honest brokerage company? the best time to buy and sell to make profit? How to cover risk? All of this is the most important question and you need to get appropriate answer that makes you a successful Forex trader. A successful trader can make money via Forex when the market moves up, and can even make money when the market moves down, believe it.