INTRODUCTION TO FOREX TRADING for NEW TRADERS

Dear Viewers,

Forex Trading has become a very popular money-making system. Since Forex trading has become very popular and trendy nowadays and there are Forex brokers advertising their services all over the world, traders should understand as much as they can about Forex trading before selecting a Forex broker.The term “Forex” is short for foreign exchange market, which is the “place” where different currencies are exchanged in a permanent fashion by millions of people all over the world. It isn’t difficult to conceptualize about Forex trading.Tourists who travel from one country to another country, they must exchange currencies in order to pay for a local expense for product or services. A bundle of Euros would be totally useless to an Italian tourist wishing to visit the Sphinx in Egypt because Euros are not the locally accepted currency. The tourist would have to exchange his currency for the local currency, Egyptian pounds, at the existing exchange rate for that day.

For Example,Even without knowing much about Forex trading, residents of one country exchange currencies with another country each time they purchase a foreign product. Mean while, someone living in the U.S. who wants to buy a nice bottle of French wine and any other imported product so he may pay for it in dollars but the wine has already been paid for in Euros. Somewhere along the line, either the wine or other product American importer had to have exchanged the equivalent value of U.S. dollars (USD) into Euros. This is all about Forex trading. I hope you well understand.

 Differently the New York Stock Exchange or other stock markets in the world, there is no central marketplace for foreign exchange. Rather, currency trading is conducted automatically over-the-counter  (OTC), its means that all transactions take place via computer networks between traders and brokers around the world, rather than on one central exchange. The market is open 24 hours a day, its mean five and a half days a week.One more thing about Forex trading: The need to exchange currencies is the major reason why the Forex market is the biggest, most solid financial market in the world. It out performs other markets including the stock market, with an average traded value of around U.S. $2,000 billion per day. Being aware of the extent of Forex trading should be enough of an introduction to Forex trading to encourage the eager investor to plunk down his money and start to trade.

 After all, Traders can make a lot of money by trading on the Forex Exchange. The more a trader knows about Forex trading, the more winning and successful he will be. It’s really a very simple idea.