A quick introduction to forex for new trader,
now that you are interested to join those millions people who have been successful on trading Forex, you will have that nerve to learn Forex further. It’s no secret that some people are closing their eyes for Forex since they think it is unprofitable investment. However, we cannot deny that there are many people out there who gain a lot from this futures investment.
A Brief and Quick Introduction to Forex
Between that confusion to jump to the Forex market or not, it’s actually better for you to learn more about this investment before you jump into a decision. Remember that knowing more will bring you to where you want when it comes to Forex trading. Now, to help you get started, this following is a brief introduction to
Forex trading.
What Is Forex Trading?
How can we win the Forex trading without knowing what actually it is? Well, Forex stands for foreign exchange and it is a decentralized worldwide market where global currencies are traded. It is considered that the Forex market is the biggest and most liquid market in the planet with an average volume of daily trading is greater than $5 trillion.
What makes this global market is unique is that there is no central marketplace for Forex. Instead, the currency trading is all conducted electronically. It means that all the transactions are done via computer networks rather than on one certain place. The market is also open 24 hours for five days and a half in a week. And, it can be highly active any time.
Things to Know about Forex Trading
As you start to learn Forex, you have the need to know everything related to Forex trading. At first, you may find that Forex trading is a bit confusing. However, as you learn about things that you need to know, you may find it a bit easier to understand all the mechanism of Forex trading. And here are several things to know about Forex trading.
• Currencies always trade in pairs
When it comes to Forex market, remember that all currencies always trade in couples. When you exchange Euros to US dollars, there will be two currencies involved. For every Forex transaction, you need to exchange one certain currency for another. This is the reason Forex market utilizes currency pairs so that you are able to see the cost of certain currency to another.
• It uses symbols for currencies
Moreover, you need to know that there are symbols for every currency. For instance, the US dollar is symbolized in the USD while euro is the EUR. Different currency will have different symbols that you need to learn as you go. Other currency symbols include AUD for Australian dollar, GBP for British pound, JPY for Japanese yen and CHF for Swiss franc.
• The Forex pair
When you go to the Forex market, you will find something like EUR/USD, USD/JYP and AUD/USD. This symbol pair represents market price related to the pairs. The price for the pair refers to how much the second currency symbol takes to purchase one unit of the first currency. For example EUR/USD is 1.3635. It means you need 1.3635 US dollars to purchase one euro.
Those are a brief introduction to Foreign Exchange. If you want to learn more about Forex, it is better to find a good broker that also offers free education to new traders that want to start trading with their service. For recommendation, there is DIDIMAX that provide you free seminars and private training to learn Forex for traders who want to make the best of their Forex trading with them.