A Short Introduction To FOREX
FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry have also said, Trading FOREX is like having an ATM machine on your own computer.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
Other Recent EzineArticles from the Finance:Currency-Trading Category:
How to Make Money With an Automated Forex Trader No Matter Who You Are
Forex Software - The Best Software Based on Audited Real Time Performance
Forex Trading Success - A Simple Strategy For Big Gains Anyone Can Learn!
FAP Turbo, The Best Automated Forex Choice - Yes Or No?
3 Reasons to Use Automated Forex Trading Software to Profit From the Forex Market
Forex Robots and Expert Advisors - Why Traders Always Lose Money With Them
Automated Forex Software Packages - Why Traders Lose With Forex Robots
How to Pick Out a Winning Automated Forex Program
Bollinger Bands (Part I)
Forex Trading Strategies Online - Know All About It
A Forex Review of the Easiest Investment Method Ever Developed Instructed by Forex Trading Made Easy
MT4 VPS Hosting
Forex Training Courses Are the Best Investment You Can Make in Yourself and Financial Future
Forex Trading Systems Can, Will and Do Generate Very Nice Returns For Their Clients
I Am the Dumbest Professional Currency Investor Ever, But I Make More Money Than All the Smart Ones
Most Viewed EzineArticles in the Finance:Currency-Trading Category (90 Days)
Best Forex Software, Performance Wise
FAP Turbo Review - Facts About the FAP Turbo Expert Adviser
How to Make Serious Money Forex Trading
FAP Turbo Discount - Can You Really Get a Discount on FAP Turbo?
Forex Trading - 6 Reasons Why You Should Start Trading Forex Now!
Forex Broker - 6 Tips on Choosing the Best Forex Broker For Trading Success!
How to Get Started on Your Online Forex Trading
LMT Forex Formula Review
2009 Best Forex Automatic Trading Robots Review
Which Currency Trading Software is the Best to Trade In? Manual Or Automated?
FAP Turbo Software Review - Is FAP Turbo by Steve Carletti Another Forex Scam?
Forex MegaDroid Review - Is Forex MegaDroid a Scam Or Does it Actually Work?
The Forex Magic Machine Reviews
Semi Automatic Forex Engine Review
The Forex Magic Machine Review
Most Published EzineArticles in the Finance:Currency-Trading Category
Forex MegaDroid Review - Is Forex MegaDroid a Scam Or Does it Actually Work?
Forex MegaDroid Robot Review - Does This Forex Robot Actually Work?
FAP Turbo Software Review - Is FAP Turbo by Steve Carletti Another Forex Scam?
FAP Turbo by Steve Carletti - Is This Forex Trading Robot a Scam?
Forex MegaDroid System - Does Forex MegaDroid Really Work Or is it a Scam?
Forex MegaDroid by John Grace & Albert Perrie - Is Forex MegaDroid a Scam Or Does it Work?
The Best Forex Software - Based on Past Performance
Forex Ambush 2.0 Review - Does Forex Ambush 2.0 Actually Work Or is it a Scam?
Forex Ambush 2.0 System - Is Forex Ambush 2.0 Actually Effective?
Why Learn Forex Trading? 4 Reasons Forex Trading Beats Stock Investing
10 Minute Forex Wealth Builder Review - Can You Build Wealth in 10 Minutes a Day?
How to Trade Currency - Learn Forex Trading Online
Currency - Forex Online Trading - Can Newbies Make Money With Forex Online Currency Trading?
Forex Confidant Review - A Forex Trading Course For the Forex Currency Trader Beginner Or a Scam?
Electronic Currency Trading - How Can You Learn to Do Profitable Online Forex Currency Trading?
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry have also said, Trading FOREX is like having an ATM machine on your own computer.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
Other Recent EzineArticles from the Finance:Currency-Trading Category:
How to Make Money With an Automated Forex Trader No Matter Who You Are
Forex Software - The Best Software Based on Audited Real Time Performance
Forex Trading Success - A Simple Strategy For Big Gains Anyone Can Learn!
FAP Turbo, The Best Automated Forex Choice - Yes Or No?
3 Reasons to Use Automated Forex Trading Software to Profit From the Forex Market
Forex Robots and Expert Advisors - Why Traders Always Lose Money With Them
Automated Forex Software Packages - Why Traders Lose With Forex Robots
How to Pick Out a Winning Automated Forex Program
Bollinger Bands (Part I)
Forex Trading Strategies Online - Know All About It
A Forex Review of the Easiest Investment Method Ever Developed Instructed by Forex Trading Made Easy
MT4 VPS Hosting
Forex Training Courses Are the Best Investment You Can Make in Yourself and Financial Future
Forex Trading Systems Can, Will and Do Generate Very Nice Returns For Their Clients
I Am the Dumbest Professional Currency Investor Ever, But I Make More Money Than All the Smart Ones
Most Viewed EzineArticles in the Finance:Currency-Trading Category (90 Days)
Best Forex Software, Performance Wise
FAP Turbo Review - Facts About the FAP Turbo Expert Adviser
How to Make Serious Money Forex Trading
FAP Turbo Discount - Can You Really Get a Discount on FAP Turbo?
Forex Trading - 6 Reasons Why You Should Start Trading Forex Now!
Forex Broker - 6 Tips on Choosing the Best Forex Broker For Trading Success!
How to Get Started on Your Online Forex Trading
LMT Forex Formula Review
2009 Best Forex Automatic Trading Robots Review
Which Currency Trading Software is the Best to Trade In? Manual Or Automated?
FAP Turbo Software Review - Is FAP Turbo by Steve Carletti Another Forex Scam?
Forex MegaDroid Review - Is Forex MegaDroid a Scam Or Does it Actually Work?
The Forex Magic Machine Reviews
Semi Automatic Forex Engine Review
The Forex Magic Machine Review
Most Published EzineArticles in the Finance:Currency-Trading Category
Forex MegaDroid Review - Is Forex MegaDroid a Scam Or Does it Actually Work?
Forex MegaDroid Robot Review - Does This Forex Robot Actually Work?
FAP Turbo Software Review - Is FAP Turbo by Steve Carletti Another Forex Scam?
FAP Turbo by Steve Carletti - Is This Forex Trading Robot a Scam?
Forex MegaDroid System - Does Forex MegaDroid Really Work Or is it a Scam?
Forex MegaDroid by John Grace & Albert Perrie - Is Forex MegaDroid a Scam Or Does it Work?
The Best Forex Software - Based on Past Performance
Forex Ambush 2.0 Review - Does Forex Ambush 2.0 Actually Work Or is it a Scam?
Forex Ambush 2.0 System - Is Forex Ambush 2.0 Actually Effective?
Why Learn Forex Trading? 4 Reasons Forex Trading Beats Stock Investing
10 Minute Forex Wealth Builder Review - Can You Build Wealth in 10 Minutes a Day?
How to Trade Currency - Learn Forex Trading Online
Currency - Forex Online Trading - Can Newbies Make Money With Forex Online Currency Trading?
Forex Confidant Review - A Forex Trading Course For the Forex Currency Trader Beginner Or a Scam?
Electronic Currency Trading - How Can You Learn to Do Profitable Online Forex Currency Trading?
Subscribe to:
Posts (Atom)