Every trader who wishes to earn profit from the fluctuation in the daily trading market may have registered as a trader in the stock market of that country. Trading in the stock market is a common concept for many people. Although currency trading is the biggest trading market in the world but currency trading is not as common as trading in the stock market in any specific country.
People are moving towards the Forex market but this movement is still not 100 percent. The main reason why this movement is not 100 percent is because of less awareness of currency trading among common people and the pitfalls existing in the stock market. In the first go, currency trading looks similar to the trading in the stock market and so people take it in a wrong manner.
If you have heard of Forex trading or want to learn Forex trading then do not think that it is the same thing as the stock market but it is a much different concept. Before taking your steps away from the Forex market, collect some knowledge about this worldwide trading market and I am sure if you will know this market correctly then you will not take your steps behind but you will like to try it once. So now the most important question comes, what is Forex trading?
- What is Forex trading?
The word Forex is derived from the combination of two simple words, foreign and exchange. In this combination, “for” comes from the word foreign and the “ex” comes from the word exchange so collectively they form the word Forex. This was the explanation of the term “Forex”. Now see what the meaning of the term Forex trading is. The meaning of the term “Forex trading” is the exchange of the currency of one country with the currency of another country so basically it is currency exchanging between different countries.
Forex market is the biggest trading market in the world where the currencies are bought and sold to earn profit. Forex market is like any other market where the goods are bought and sold but still this market is different from all other trading markets in the world. Forex market is different from other trading markets because the goods are bought and sold in all other trading markets whereas in the market only the currencies are bought and sold. Let’s take an example that if a trader thinks that the value Australian dollar may rise tomorrow and the trader is from Europe having enough Euros so he can quickly place an order to buy the Australian dollar by selling the euro. The currencies that take part in the trading procedure form the currency trading pair. Now you know What Is Forex but if you want more information about What Is Forex Trading so continue reading this article.
- Why the population of the Forex traders in the market is increasing every day?
The Forex market is a global currency trading market that operates worldwide. The traders from all the countries took part in the market and this is the reason why the population of Forex traders in the market is increasing and will continue to increase in the coming years because there are still millions of people in the world who are not aware of this huge money earning potential and if they will know all the advantages of the market then they will be curious to join the market.
- What is the approximate total trading done in the Forex market every day and why the total trading volume is so high?
The approximate total trading done in the market every day is more than three trillion USD. This trading volume on any day is highest than the total trading volume done in any other financial market of the world. The total trading volume is so high because of two main reasons, worldwide accessibility of the market and Forex market hours.
- Worldwide accessibility of the Forex market
The foreign exchange market is the worldwide trading market. It means that you can get access to this market from any part of the world. The only requirement to get access to this market is internet connectivity. The place from where you are trying to access the Forex market should support internet connectivity. It will be impossible to get access to the market if you are at a place where there is no internet connection but still there is a hope that you can dial the customer care number of the Forex broker and ask him to place the trade order. If the place where you are does not support the phone calls also then it can be said that the market does not operates at such a place. Now you know What Is Forex but if you want more information about What Is Forex Trading so continue reading this article.
- Forex Market Hours
The next reason responsible for so high daily trading volume in the market is the Forex market hours. Foreign exchange market is the single trading market in the world that operates 24 hours a day. The concept before the market hours is the worldwide accessibility of the Forex market. You know that time may be different in different countries. If it is day in US then it may be night in some other country such as India. So if the trading time closes in one country then the market opens in another country and this continues for the whole 24 hours so this is the reason why the Forex market does not close for a second in any trading session. Now you know What Is Forex but if you want more information about What Is Forex Trading so continue reading this article.
- What is the most important factor that should be considered after the trader has decided to do currency trading?
The most important factor that should be considered after the trader has decided to do currency trading is the selection of the correct fore trading account. There are four main types of trading accounts, mini Forex account, micro Forex account, standard account and the demo Forex accounts. The Forex mini accounts are for the average traders, the Forex micro account is for those traders who have just joined the market and do not want to lose much but learn more. The standard accounts are for those traders who are rich enough to take big risks and enjoy the opportunity of earning more.
If you are a beginner who wants to learn more but do not want to lose a single buck then you should register a Forex demo account. The trading Forex demo accounts go exactly as the trading from other accounts with only difference and that is the use of the virtual money. Trading in all other types of trading accounts is done in the live market whereas trading in demo Forex account looks like real but in reality no real money is used. The trading is done by the virtual money that is provided by the broker to the trader and broker does not charge a dime for this service.
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