What is Forex?

What is Forex?
1. Forex. What would that mean?

Forex is the largest world currency market. The profit of its participants depends on their ability to track and compare fluctuations in exchange rates, and receive income from changes in the activity of currency pairs. What is this for? Currency exchange is a constant necessity for the normal functioning and development of certain sectors of the economy, such as tourism services and international trade.

In addition, speculative currency purchase and sale transactions make up the lion's share of the total turnover of the over-the-counter international Forex currency market.

Previously, only large central and commercial banks could be participants in Forex. Now, with the development of the world wide web of the Internet and the expansion of opportunities, the Forex market has opened access for everyone.

Forex does not have a specific trading location, which allows traders all over the world to trade using the Internet. This is the most modern, highly profitable and exciting business. The work space is not limited by time frames and geographical borders, which opens up wide opportunities for all market participants.

Forex is developing steadily and is the most powerful and profitable global commercial market. Its huge turnover (several trillion dollars daily) far exceeds the activity of stock exchanges.

The main feature of the Forex system is that anyone can work and make profit at any time convenient for him (since trading in the foreign exchange market is carried out around the clock, 5 days a week). Small market participants, called traders, can carry out the necessary trading operations without leaving home, or in any convenient place where there is an Internet connection. In short, you sit in your favorite chair, have a coffee, and at the same time conduct a currency exchange transaction. The earned profit is displayed on the card and cashed. In principle, nothing complicated, you can try. It is important to catch the point and "get your hand in it." Interested in? Then let's go further.

2. Forex market. Trade Details.
The main point of trading in the Forex market is the purchase and sale of foreign currency. That is, as in any other market, you need to buy some currency cheaper, in order to sell it later at a higher price.

For example, at the moment you can buy 900 euros for 1 thousand US dollars. If after a while the dollar against the euro becomes cheaper by at least 10 cents, then by performing the reverse operation (exchange euros for dollars), you will have $ 1,100, or $ 100 in net income. The conclusion is quite simple: the more you have your own funds for work, the more profit you can get.

3. I would like to test my abilities, but there are no funds. Is there a way out?

There is always a way out for those who want to work. Forex trading is a unique earning opportunity for enterprising and resourceful investors who are able to think, analyze and develop. Assiduity is also necessary, as well as a desire to learn and practice. You can start trading with only a few dollars or cents. Market intermediaries - Dilling centers - will help you participate in trading by providing leverage. These are certain loan funds, with the help of which you can significantly increase your initial deposit. For example, if you have only 10 dollars, then having drawn up a leverage of 1: 200, you will be able to trade starting from 2,000 dollars. You yourself will choose the leverage acceptable for you (1:10, 1: 100, 1: 200, 1: 500).

What if there are no funds at all?

You can even find a way out of this situation. Many DCs (dealing centers) often hold various contests and promotions, to the participants and winners of which certain bonuses are credited to the account. Minimum requirements and valuable prizes are an excellent incentive to start your career. It should be noted that not all DCs allow you to cash a reward, but in any case, you can use the accrued bonuses to participate in the trade. Since dealerships often change the conditions for holding contests and accruing bonus funds, you will often have to go to certain sites to always be in the know about the latest events.

Taking part in various competitions, you can:

a) test your abilities and skills;

b) to test the work of their own strategy in business;

c) use minimal or zero investments;

d) receive initial capital without costs;

e) even in case of unsuccessful trading, do not lose personal funds, with the exception of bonus ones.

An important point of this item and the key to future success is the correct choice of a broker or DC. Your future trade depends on him. Therefore, it’s worth starting your work with the selection of a reliable DC that has a reliable reputation, a long stay and a certain weight in the Forex market, which provides the most favorable trading conditions (training, quick profit withdrawal, etc.)

4. “A coward does not play Forex!”

First of all, it is necessary to understand that Forex trading is not a roulette game, but rather difficult and painstaking work, which involves (as, by the way, any other work) compulsory training, practice and constant self-improvement. Even the most dexterous and experienced traders can sometimes make mistakes and suffer losses. The Forex market is often unpredictable, so the most important skill will be to minimize losses and timely overlap of loss-making transactions profitable.

5. Forex market. Key Trading Principles

Note that in work in any market, in addition to knowledge and experience, a combination of professionalism, skill, emotion, intuition and luck can also play a role. How to properly distribute your strengths and skills so as not to merge the entire deposit at once?

First of all, training and practice:

a) The main trading principle - “buy cheaper and sell more expensive” implies the presence of certain knowledge and experience. Therefore, before starting work, it is necessary to study the relevant literature, sites, articles, communicate with professional traders, practice trading on a demo account.

b) Make a trading plan.

The key to future successful trading will be a carefully thought-out algorithm. Make a trading plan, select the appropriate strategy (use the already prepared and improve it or create a new one). Be sure and without haste, test her work on a demo account.

c) Learn to feel the market.

Study the fundamental and technical analysis, follow the news. Gathering the necessary information, learn to draw conclusions and predict future market behavior. Trade at a time favorable for transactions. Some traders are more successful in flat trading, others are exclusively on the news, while others use active market movement. Choose your system that allows you to trade at certain hours and at a convenient time of day.

d) Diversify funds.

Do not trade immediately for the entire deposit. Divide the available capital into several accounts. Thus, you will get the opportunity to apply various strategies, use several currency pairs and minimize the possibility of loss.

e) Correctly select the size of leverage.

Novice traders should not be in a hurry to choose a large leverage. Tempting accelerated deposit growth can lead to unforeseen losses. 1:50 - the lever most suitable for beginners.

f) Learn the rules of money management.

Do not forget to set protective orders Stop - Loss and Take - Profit, which will help protect against losses. There is no ideal profitable trading system, therefore it is better to improve a ready-made strategy than to constantly look for a new one.

g) Down with emotion!

Know how to stop on time. Sometimes even several consecutive losing trades cannot stop the trader, and he completely merges the deposit. Do not bring yourself to a complete loss. Work on your character, learn to control emotions, do not succumb to panic. No rumors, gossip and speculation during work. Only your mind, intuition and a well-tested trading system work.

h) No loans.

It is better to save a little money in advance in order to trade, so that later you do not get into loans or leave the family without means of subsistence.

6. Make money on Forex - is it real?

The round-the-clock operation of the market provides daily a lot of opportunities for conducting various trade transactions.

Forex cannot go bankrupt, as trading is conducted in various directions. Currencies are traded in pairs. And if one currency in a pair falls in price, then the other will rise relative to it. Therefore, market participants conclude trading operations of various directions and durations, thereby regulating the possibilities of profit and loss.

Brokers provide their clients with a lot of free information and additional material available, they provide leverage, a minimum deposit, a low spread, fast execution of trade orders and cash withdrawals.

In order to really make money on Forex, you need to study in detail the aspects of trading, learn to listen and analyze the market, become strong regarding discipline and emotions. Think of Forex as a serious job, not a quick and easy part-time job.

No matter how much your relatives intimidate you and flashy advertisements lure you, only you yourself must make the final decision. Breaking through a web of garbage and gossiping around Forex, just believe in yourself!

The prospect of earnings in the foreign exchange market is too distinct to ignore it. But, in any case, you have to learn a lot to weigh the pros and cons.

What will prevent you from becoming a successful trader? Study, study, improve and achieve the desired results. Tune in that there will be no easy money. To become an experienced trader, you will have to make an effort. Believe in yourself, and then you will gradually get rid of misunderstanding and nebula. And, actually, why can't you? Your success depends only on your desire to develop and move forward.

Have a nice road!