What is Forex trading, Currency trading



What is forex tradingForex trading or FX trading is trading between currencies. People trade currencies to make money. Forex trading is an unique investment and trade in many ways. Most important factor though, is its liquidity factor. The players or participants in this trading say that Forex trading gives great return on investment.

How to trade on forex. FX trading made easy

Trading on forex follows certain procedures. You have to first join a broker who is offering this service. Once you join and open an account with a forex broker you can start trading. Forex trading is a risky trading. You have to learn about the factors affecting the market and learn your strategies before you begin trading. FX traders or brokers all offer you a demo account or a practice account for you to begin with. After opening a demo account you can begin trading and learn to react to the political, economical and other factors. Once you learn to react and start making progress, you can open a live account. Talk to your broker before opening an account about the formalities in your country to start trading forex.

Trading usually happen between two currencies. You have to buy one currency to sell other here. There is a base currency. US dollar is the base currency in all situations except when traded between Euro and Sterling. Most active currencies here are USD, EURO, AUD, JPY etc. Most of the trade happens between USD and EURO with a share of nearly 27% followed by USD and JPY 13% according to available statistics.

Forex market is a risky business. The market is always open and you may wake up one day to find all your balance wiped away one day if you are not active and up to mark. Learn the factors affecting the market before becoming a player here. The factors affecting forex market are supply and demand factor, Economical factors like Budgeting surplus and deficits, BOT, etc, political conditions and market conditions. You have to utilize these factors to make money with forex.
Various trading opportunities on forex market.
The various trading that happens on forex market is spot trading, Forward trading, Futures trading, Option trading, Swap trading and Specualtion. You have to learn various options of trading before you join forex.

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