What is Forex? FOREX is an abbreviation of Foreign Exchange often it is called as FX. Also, the Term Forex used to describe Currency trading on foreign exchange market which is known as Forex trading or FX trading. Take note that Forex Market is the largest financial market on the planet with an average daily traded volume of about 5.5 Trillion US Dollar while the world’s largest stock market, the New York Stock Exchange, trades a volume of about $22.5 billion US Dollar each day.
What is Forex Trading?
What is traded in Forex Market? Well, Money is the only things traded in Forex Market, while you are buying one currency you are selling another. Thus Forex trading means to buy or sell in currency pairs.
Forex Market is open 24 hours a day and five days a week. This makes a huge advantage for forex trader that, they can buy or sell any currency pair, at any time during the market is open.
Forex trading is very similar to Stock and bond trading, usually a stock trader buy a stock which trader thinks its price will increase in the future, alternatively sells a stock if things the price will decree in the future.
In a similar way, a currency trader will invest into a currency pair if the trader thinks its market rate or exchange rate will rise in the future and alternatively sell a currency pair if the trader expects its exchange rate will fall later.
More about – What is Forex & Trading
Currency Price increase and decrease just like stocks, bonds, electronics, cars, and many other goods and services. Actually, a currency’s price varies as its supply and demand vary, simply like everything else.
To trade Forex it always require some investment like all other trading or business, thus Forex involve risk to trader’s invested capital. Further more Forex trading contain Leverage and margin that makes it risk level too high as the high level of leverage can work against you as well as for you. But there is way out to start Forex trading with a Demo/Practice account. A Forex demo or practice accounts is replica of real markets account, Its operation is like real market But the money is virtual.
What is Forex Bonus?
There is way to start Live Forex trading without risk, obligations and Investment with Forex NO Deposit Bonus offer By Forex Brokers, actually the Broker Invest money for their trader to test their Trading environment and platform, note that some Brokers allow withdraw all profits traded with no deposit Bonus offer.
What if you are planning to invest directly into your Live trading account to began your Forex trading, Well there are many Forex Deposit Bonus Offer available where Brokers Provide up to 100% Bonus on their Invested capital meanwhile this Bonus can be traded like own own money. Please watch the video below to know more about Forex Bonus.
Most Important things about Forex trading is, You can make profit/loss when the market is trending up or down, Unlike traditional market.