FOREX: Everything You Need To Know
The word Forex is gotten from ‘foreign exchange’
Forex is a global market for exchanging of world’s currencies.
Despite it being a market, there isn’t a specific central market for forex, Rather currencies are traded electronically over-the-counter(OTC)
Different transactions occur via computer network amongst traders instead of going to a market place.
The Forex market is a round O’clock market(24 hours) except on weekends.
The market is affected by daily activities. That is, economies of a country.
Currencies of developing countries like USA and Japan are mostly traded. They are known as Major Currencies; USD(United States Dollar) and JPY(Japanese Yen)
Usually, Currencies are traded in pairs (you sell your local currencies to buy another one) When you buy a currency, it’s like buying a share in that country and trusting that the economy of that country will get better with time. Once you sell this currency back to the market, you’ll hopefully end up with a profit.
How To Trade Forex
Start by Research and reading courses about it or easier register in a forex academy.
It’s advisable to practice all you’ve learnt in a free Demo account. You can then start with a live account using proper risk management.
Register with a broker to help you execute your trade. A forex broker is a financial services company that provides traders access to a platform for buying and selling foreign currencies with leverage.
Most brokers don’t charge commissions and fees on placing a trade nowadays. A few example of brokers include Deriv and Exness.