Before we understand the forex market, let’s understand what is MARKET? I hope you all are very familiar with the market,
Yes, you got it Right. The same market you visit to your daily life needs, when you are in need of fresh green vegetable you will visit the nearest Vegetable market, or if your requirement is meat, you will visit the meat market,
A market is a place, platform, or system to exchange goods and services or in simple terms to where a buyer meets sellers.
There are various segments of the market namely Real Estate Market this market typically involves agents representing both buyers and sellers for land, Job Market, a platform to connect employee and employer
And Financial Market, A platform to exchange economics and the financial instruments are Stocks, Currency/Forex, Bonds, derivatives, money market, commodities, cryptocurrency.
Forex is an abbreviation of Foreign Exchange, also known as Fx or currency market and it is a place currency are traded, and the daily turnover exceeds over 5 trillion dollars, If compared with combined world stock market transaction, It doesn’t even come close to this market.
Exchanging currencies are important to conduct imports and exports, a country like India imports the mobile phone from China and has to make payment in Dollars equivalent to Chinese yens, and India on the other side provides software services to the European country such various purpose of exchanging currencies globally makes the foreign exchange market large and easily liquid,
Fores is a great starting point for traders, but many do end up trading excessively, because of leverage, where you only have to put up two percent of an overall contract size compared to one with the stocks, a small account can trade large size where a win can be quite big you only need a small deposit to obtain it.
Fx is a 24-hour market, with a laptop and internet connection you can trade any hour of the day from anywhere in the world.
Learning to trade forex can be a wonderful opportunity, success only through determination and professional mindset with understanding risk.
Trade forex like running a business with a reputed broker