Forex Guide

May 16th, 2011

Forex (Foreign Exchange) is the international market of currencies, and also the largest in the world with daily trading of around 1.8 trillion dollars. We can say that in this challenging market, the object of trade is money, Euros, U.S. Dollars, Australian Dollars, and so on.

There are several reasons why more and more people approach the Forex.

  1. It is a very liquid market, which means that you can open and close with ease anywhere, even in large sizes.
  2. It is open 24 hours a day, 5 days a week, from 00:00 am to 10:00 pm GMT Monday to Friday GMT.
  3. There are no fees. You pay a certain amount called a spread that depends on the size of the open position and condition of the broker.
  4. It is possible to operate with very small value. Some brokers are able to open positions that start at a few dollars. This is excellent for beginners, who may want to experiment with very low risk.
  5. It is possible to open positions using only a fraction of the total value of the position. The ability to control a significant sum of money by using a fraction of that sum is called leverage. This is one of the main reasons why the Forex attracts the attention of so many speculators and investors.

How can we have the prices and quotations : In Forex, the currencies of various countries are compared, which is directly proportional to their economic conditions The comparison is in the form XXX / XXX, where the currency on the left is called the base currency. You’ve certainly heard of Eur / Usd, the most popular currencies in Forex, are compared to the currencies of Europe and America. The comparison reads “ Euro against the U.S. dollar.”

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