Forex introduction is generally done for traders who are new to the world of international transactions. Foreign Exchange or Forex abbreviated is a type of transaction that trades the currency of a country with the currency of another country.
This transaction is open 24 hours. But still, you cannot trade anytime. Each country or region has its own trading time. Forex movements take place in various parts of the world starting from the New Zealand market, next to the Asian and European regions.
The time for transactions in these various regions is 05.00 – 14.00 for the New Zealand area, 07.00 – 16.00 for Asia, and 05.00 – 17.00 for Europe. According to a world survey, the value of foreign exchange market transactions reaches more than USD 1.4 trillion per day.
Forex has become the most popular alternative because the ROI and the profit earned exceeds the average. However, foreign exchange carries a high risk but also offers you a lot of money.
Forex Introduction and Its Meaning in the World of Investment
Foreign exchange is a foreign currency transaction. The process of exchanging top currencies is due to the need for foreign currencies. For example, it is used for travel abroad or shopping for various goods using international transactions and others.
Apart from being used for non-profit purposes, people do this transaction to take a profit. The party will buy a certain amount of currency to take profit from the result of the difference in currency values.
Traders like this are certainly experienced and always updated on various factors that affect the value of world currencies. Things like that novice traders should know in forex introduction.
There are still many people who think that forex is a gambling game. This is based on forex activities that are considered to only rely on luck and predictions. This statement is considered inaccurate because various analyzes and calculations are also used in this transaction.
The Beginning of Forex is known to The Transaction Procedures
People in the world were not familiar with currency transactions before 1994. Americans used to only have dollars and they could not exchange euros. Instead, all international transactions are replaced by using the international gold price as a trading reference.
In the forex introduction stage, we also have to know the process and how the trading works. As already explained, this trading also requires certain analysis and assessment. Therefore, traders need a so-called broker. The following is an explanation of the broker:
1. Broker's role in forex
Traders or people who play in forex will carry out transactions. This can be done yourself or using the services of a broker. Best forex brokers provide various facilities such as security, transaction facilities, and others.
2. Currency Exchange Rate Fluctuations
It must be remembered that in the forex market there is no reference to currency values. In other words, there is no forex market mover unless the party has large funds. Forex market transactions occur due to fluctuations in foreign exchange rates.
3. How to Trade
The procedure for forex trading in principle is the simultaneous buying of a currency and the sale of another currency. Then the currency pairs will be traded simultaneously. You just have to give the command to the broker.
Example 1 EUR = 1,237 USD. Conversely, you will get 1.23700 USD in case you are trading 1 euro. In the didimax forex broker, you will be introduced to the concept of forex trading and other services.
Forex is a
foreign currency transaction that is increasingly being chosen by people as an investment. This trade involves several suitable foreign currencies and can be traded under certain conditions. This is used to achieve maximum results in Forex introduction.