What is Forex trading? A complete introduction
People around the world look for various sources of income, and in these sources “Forex Trading” has become very popular today. Many people have won the sector, while some have also suffered losses. But the question arises whether this is forex trading? And what is important to know about working in it? In this article we will introduce a complete introduction to Forex trading in a simple and simple language.
What is Forex trading?
Forex means Foreign Exchange, that is, to exchange one currency with another currency. It is the world’s largest financial market where there is a daily trillions of dollars. In this market, currencies from different countries are bought and sold. For example: If you think the euro prices will rise against the US dollar, you can buy the euro and make a profit by selling later when the price goes up.
How does the market work?
The Forex market is open for 24 hours, except Saturday and Sunday. This market runs in various international sessions such as Sydney, Tokyo, London and New York sessions. In this market currencies are traded in the form of “pairs” (currency pairs) such as:EUR / USD (Euro / US $)GBP / JPY (British Pound / Japanese yen)The first currency here is “base currency” and the second “counter currency”. You can make a profit through the price fluctuations of these currencies.
The basic principles of forex trading
1. Market Analysis: Successful trading must learn market news, charts and technical analysis.
2. Rescue Management: As much as possible in Forex, as much as possible, there is a possibility of loss. Therefore, the rescue management is very important.
3. Start from the demo account: New people should exercise on the demo account before they make real money.
4. Trading Plan: Each trader should work with a clear strategy and principles.
The benefits of trading
Starting from lower capital possible
Twenty -four hours of trading facility
More liquidity (quickly buy and sell)
There are many free resources available to learn
Disadvantages and concerns
The possibility of more loss with high profits
Emotional decisions often cause harm
Threat to fraud from unregistered brokers
For whom is Forex trading?
If you are interested in the financial market, have a passion for self -learning and exercising and can make decisions by understanding the Rescue, forex trading can be a profitable opportunity for you. But if you make decisions without rush and research, it can also be harmful.
Conclusion
Frading is an interesting but sensitive department. Success depends on your knowledge, experience and discipline. If you start learning in the right direction and work patiently, this department can give you financial freedom.
One Response