In this article, we will try to give you a brief overview of what Forex is and how it can generate profits, how to learn forex, and how to invest in forex. Please read it until the end of the writing and write your questions in the comments section. We hope you can benefit.
What do we mean Forex?
A Forex word is a word formed by combining two different English words. Foreing and Exchance are formed by combining for- and ex- syllables. In the economic sense, it can be defined as the value of any currency against another currency. If you are traveling abroad or are interested in foreign exchange for your business, then you are definitely trading on the forex market.
How is the Forex market traded?
Trading on the Forex market is pretty easy, as you might think. You can trade on forex via banks, foreign exchange stock market, forex brokerage houses. For example, you have 1000 dollars in your hand and want to change it in euro or pound currency. Here you are entering the Forex market. If you want to go to the currency exchange office and convert the dollar in your hand to euro, or vice versa, if you want to convert euro into your own currency, you are trading in Forex. You can do this in the bank, not in the exchange office. However, the price difference between the purchase and sale of banks is very high compared to the currency bureaus and is not much preferred.
Today, the situation is different for Forex brokers in television or internet advertising. When you open an account with an intermediary institution, you can do this 24 hours a day, 5 days a week with your computer, an application that you download to your tablet or your mobile phone. The difference between brokerage houses, banks and foreign exchange bureaus is that they can predict where the prices will go with basic and technical analyzes on the platform on which the transaction is made and give them the opportunity to invest.
Forex is the biggest market in the world. There are large banks (Deutsche Bank, Citibank …), large money management funds and government agencies (FED, ECB …) and the daily trading volume is approximately 5 trillion dollars according to the June 2016 data.
How can you enter the Forex market?
First of all, if you are going to be a millionaire in this market, we definitely recommend you stay away. Forex is an investment instrument like other investment instruments, and no one promises to be a millionaire. We recommend that you go into this market once you have done a good job. Because forex is not like a stock exchange. Lever operations are performed. The leverage can bring big profits, cause huge losses, and cause unexpected results.
If you are considering trading on this market and you can not decide where to start, open a demo account from a brokerage of your choice. With a demo account you can experience forex with virtual money to be defined, even if you are going to loose, it will not hurt you. We recommend that you open a real account after you have been trading in the demo account for at least 3 months. You can benefit from informative articles from the basic and technical analyzes on our site while trading demo accounts and you can experience with free training that your intermediary institution will offer you.
If you have decided to pass the actual account, there must be an amount you can deduct from the amount you intend to invest.
You may think that the demo will take you to the actual account after the training if you will get the experience from the account and the forex market. The amount you will split when opening a real account should be an amount that will not disappoint you. So even if you lose some of the money or whatever you have invested in the market, you should not ask yourself that. There is no rule that you lose in Forex, but you have to take risks. Giving or losing will give you an experience and every experience will drive you to invest better.
Do not hesitate to share your questions and opinions with us, plenty of …