Learn Forex
The forex market also known as the currency exchange market, or Forex or is the largest financial market. Forex is becoming more popular with more and more investors because of the advancement in technology which means that all traders need to stat trading the online forex market is a computer with an inter net connectivity.
Before the growth of the internet, Forex trading was only accessible to central banks, large commercial banks, hedge funds & the very wealthy individuals. But with the growth of internet forex trading has become accessible to the average retail traders and investors. This is because online brokers have come up to offer access to the market and connect the traders to the online market. A trader who has a computer that is connected to the internet can download software from these forex brokers and then place trades in the online currency market using this software. The software is oftenly referred to as a trading platform in the online forex market.
This trading site will offer forex courses that traders can read and learn about the online market. Te forex lessons in this online course will show traders how to use the various tools provided for trading forex such as charts, platforms, indicators used to analyze the market tools and how to use these indicators to come up with forex systems that will try to predict these forex market moves so that traders can know which direction to place their trades when trading these online currencies.
About The Forex Trading Market and The Basics of Forex Trading
What's Forex?
The forex market is where foreign currencies are exchanged and traded against each other. The forex market doesn't have a central exchange market place but it is an Over The Counter (OTC) market. This means that currencies are exchange through an interbank network which is made up of the big international banks.
The forex market trades a daily turnover of $7.2 trillion every day making it the largest and most liquid financial market in the world. This trading activity is carried out electronically through the internet globally. A trader can place trades in online currency exchange market from anywhere in the world as long as they have a PC Desktop computer that's connected to the internet.
How Do I Trade Currencies
Traders will place buy or sell trades when trading currencies. Traders will buy a forex currency pair when they predict that the currency pair price will go up and traders will sell a forex currency pair when they predict the currency pair price will go down.
Traders will try to make profits from these market moves by placing trades in the currency so as to make profits from the differences in the currency exchange rates. The exchange rate at which one currency is exchange for another keeps changing every time and traders can make profits from trading these changes in the currency exchange rates.
Traders use forex charts to try and predict the future price of a currency pair. On the chart traders may use forex indicators - indicators are tools that help traders to determine the market direction that a currency pair is likely to move towards. Forex indicators are also explained in this course on the indicators section of this site.
On this course traders can learn by starting with the section where they can learn the fundamental basics of forex trading that every new trader should learn. Traders can then learn about technical analysis which is the study used to predict currency market moves by studying the indicators section & forex strategies section of this online learn forex web site.
Traders can then learn how to implement these concepts by using a demo trade account where they can practice what they learn by trading and applying these concepts on their practice trade account. After traders learn on the demo trading account for one or two months they can then open a live account and begin trading the real market online.
Benefits of Forex Trading
Low transaction costs - because forex has a lot of traders participating in this market and the market is very liquid the transaction costs of trading forex are very low. The only transaction costs paid by a trader is the spread & the spread is only paid when a trader is opening a trade. In forex trading there are no commissions charged for trade the only trade cost is the spreads.
Leverage - with leverage traders can use little of their capital and use this leverage to borrow money to trade with. When using leverage a trader only require to deposit a small percentage of the total transaction that they want to open. For example with leverage option of 100:1 a trader can borrow up to 100 times their capital and therefore if a trader wants to open a trade transaction of $10,000 - then the trader only require $100 dollar to trade this transaction because $100 dollars multiplied by 100 times (leverage of 100:1) is equal to $10,000. This leverage means that a trader is only required to deposit only 1% of the trade they want to open and the traders can then borrow the rest of their money to trade with from their brokers using leverage.
Summary
By learning forex and coming up a trading strategy a trader can learn how to trade forex and how to make profits from this online market. A trader should follow the tips above to learn more about forex and this way a trader can be able to ascertain from trading the market using a practice practice account whether opening a trading account and investing in the forex is a good investment option for them or not.
