Dear Tradelings! The basics come first. To give you Bird's eye view about Forex, I took out some basic concepts & knowledge of Forex market, which I think you should go through......Don't worry ,it is short & sweet...
- Forex is acronym for Foreign Exchange and is the biggest Financial Market.
- Forex involves Day trade volume of $4 Trillion (just imagine the number of Zeroes). But traders like us trade the spot market which is about $1.5 Trillion on average.
- There is no centralized market for Forex unlike Futures & Stocks, and the trading is done via phone or electronic network through broker.
- Forex is 24-hours open 5-days a week.
- The Foreign Exchange market is Most traded and over-the-counter market.
- In Forex, You are trading currencies of different Countries. Currency trading is done in pairs i.e. buying or selling one currency against another currency.
- One can make money by buying low & selling high or selling high & buying low, the same currency depending upon it's strongness or weakness with respect to other currency.
- Forex is based mostly on Speculation of Traders & Price moves as a result of overall combined speculation of all traders in the market.
No comments:
Post a Comment