Wednesday, April 25, 2018
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What is Forex Trading
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The term Forex or FX which derives from Foreign Exchange has become an increasingly popular one, and even if you are not aware of what it means, it’s most likely that you have hard it before. The Forex market is a hugely rising market, of Foreign Exchange online trading, which has existed for decades, but with the rise of the internet has become a multi trillion dollar industry available to anyone with a computer and internet access.

To be more specific Forex is the simultaneous selling and buying of one currency with another. The currencies in Forex come in pairs; for example EUR/USD. The exchange always happens between one currency of the pair with the other. The pairs are fixed and will always remain in the same order.

The trade happens through a Forex broker which provides the trader with a trading platform on which all trades are executed. The profit is made through the Spread that the company offers its clients. So whether a trader loses or gains a small percentage of the spread will be taken by the company in the form of a commission.

The way of trying to gain money off of Forex trading is to predict market movements, and the changes of currency prices, just like a real life trade. You “sell” a currency expecting its price to drop, or you “buy” a currency expecting its price to increase before you sell it again.

The best way to get acquainted with what Forex trading is, would be to open a Demo account and trade with a company without investing any of your own money, and seeing if this is something you could get the hang of.

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