Learn Forex Basics
Forex is the business of trading currencies and is one of the biggest financial markets where billions of dollars are being invested daily in this business. Forex business was managed by banks in the past but now it is being done by individuals or mt4 forex broker and some financial companies and you can even do it online for the comfortable of your home. Online Forex trading is more powerful than the regular Forex trading since you can do it from home and you have an online system to do the trades instantly either by yourself or through Forex broker.
Forex Trading consists of currency transactions between Forex traders, Forex brokers and banks. The process is controlled by demand and supply of some currencies and their availability in the currency trading market.
Every 2 currencies being traded against each other are called “Pair” and Forex Market consists of 4 main pairs. Euro-USD , USD-GBP USD-Japan Yen , USD-Swiss Franc.
The trading process.
As example for a good trade, You can buy 100 GBP for 200$ then wait until the rate changes and sell those 100 GBP for 210 or 220$ depending on the rate that time. this is good money with no much work and you can even do this online through Forex broker. A price of a countries currency or normally called “quotes” is divided into a bid price and an asking price. The bid price: A price which the dealer is willing to BUY at and the price a trader(you) can SELL at. The ask price: A price which the dealer is willing to SELL at and the price a trader(you) can BUY at. The difference between the bid and the ask price is called the “spread” The spread is counted in “pips”. A “pip” is normally 0.0001 of an exchange rate. Lets say the Euro versus the Dollar trades at bid price 1.3415 and ask price 1.3420. The last decimal is called a pip. The spread in this example is 5 pips.
Forex is very profitable if you know what you are doing. there are many online sources of information about this business and most of this information is free. Making a profitable business with steady income is not easy but it’s easier with Forex since it’s the biggest financial market in the world with daily cash flow. you can easily start learning the basics then know how to master the business and make your own strategies.
An effective and comprehensive Forex trading course would open your eye on the techniques being followed to develop a profitable Forex trading business model. You can even put your system on an auto pilot or “Forex Robot” since the market is open 24 hours for seven days a week then you can even make money while you sleep.
In the end, you should be alerted that profits don’t happen over night and it has some risks. So you should be patience and as you work you will learn more and turn from starter to professional Forex trader.