Suwandi9bintang.com– The Forex market is often more attractive to people who like to live on the edge. There is a lot more uncertainty so far and the benefits of knowing when to buy and sell can be enormous.
For those of you who don’t know, Forex stands for Foreign Exchange Market. Forex transactions in all kinds of different currencies and pit them all against each other.
For example: British pounds may be worth more than American dollars but if there is a natural disaster or bad political event, then pounds can drop below the value of American dollars and thus will make money for individuals who have bought British pounds, when they sell.
People who trade in the Forex market refer to them as day traders. The reason for this is that the day trader buys at the start of the market for the day and then sells everything he has bought at the end of the day. This type of trading is not for the inexperienced.
There is potential to make a lot of money in the Forex market, but it takes someone who is knowledgeable in all the different aspects of this slick exchange to make money. New people in this market can exterminate easily in minutes!
The Forex market is also a liquid market with currencies changing hands from time to time. Since transactions are handled electronically all over the world, it only takes a moment to transfer funds to a different account.
It’s easy to make a few trades, watch news shows in the country of the currency being bought, and then sell them all, to have money in your bank account at dinner time.
The Forex market is also open twenty-four hours a day as it covers a larger market all over the world. Theoretically, a trader can work all day and all night.
Multiple forex markets
This makes the foreign exchange market very popular because people can trade whenever they want. One can trade on the Paris exchanges until they close at which time the New York exchange has just opened for the day.
There are five major foreign exchange markets around the world. They are New York, London, Frankfurt, Paris, Tokyo, and Zurich.
Many people like to invest in the Forex market because there is a lot of leverage available to day traders. For example, you can use five thousand dollars to buy five hundred thousand dollars on margin.
This means that individual investors can trade with more money than they actually have. However, one must be careful; it is very easy to lose money and thus have to pay more than what is actually in the bank account.
The Forex market is a challenging market to understand and can be dangerous for those with no experience in day trading. However, for those who are experienced and can see market patterns, it can be very exciting and very profitable.