what is forex
Forex is an abbreviation of “Foreign exchange”. The market is a whole set of various operations with currencies, realized via a system of establishments (multinational corporations, pension funds, central banks, investment banks, commercial banks, insurance companies, dealers and brokers, etc.).Currency deals are carrying on between the main participants, as well as through intermediaries. Forex is not the currency market in complete understanding, as the market is a network of the trading relations, which are not tied to a specific “physical” place of trade. Forex market works five days a week. Furthermore, it operates on the twenty four hours basis.
what is a forex trader
It is known that about 25 percent of all Forex traders receive a steady income for an extended period of time. These successful market participants just follow a few rules of the game every day, every minute of being at the trading desk monitor. The volume of transactions on this market by some estimates account for more than a trillion dollars a day. The most transactions on the fx market are made not for the purpose of purchasing a real currency, but for the purpose of earning money from the difference in exchange Forex rates. The price at which a certain currency is converted to another one is defined as exchange rate. Supply and demand for a given currency make a great impact on the quote of the currency on the OTC market. Exchange rate is continuously fluctuating. It’s necessary to allot the currency rates of seller and buyer. And you will receive a profit.
forex market news
A Forex player must realize that a substantial risk inseparable from big profits, which, as you think you, may gain. Consequently, you have to know the rules, according to which exchange rates form and fluctuate, trading instruments, learn structure of Forex market and kinds of risks, peculiar to operations on the financial market, and ways of predicting and analyzing market situation if you really want to reap big profits and make the level of risk as much as possible. It’s possible if your experience is enough in order you could do this. You will know how to get this knowledge and apply it practically for improving your trading results if you open a demo account within a brokerage company and gain Forex education, which keeps up with the times. Thus, practical training and education is what you need for being a successful trader at FX.