Forex Trading Explained

The word forex is a combination of two words viz-a-viz
i.   Foreign
ii. Exchange
It is a global market for exchange of currency speculatively. In other words it is synonymous to bureau de change business.Trading forex is the most profitable venture an investor can undertake.
What is involve in forex trading is exchange of one currency for another ,i.e Buying and selling with the aim to make profit.Selling of weaker currency to buy a prospective stronger currency.
The participants in FOREX trading are Commercial Banks, Central Banks all over world, Firms that realize foreign trade operations, Companies that realize depositing of foreign assets (Investment Funds, Money Market Funds, International Corporations), Currency brokerage firms, Physical bodies, retail traders. Participation is through the investment of fund (minimum of $100), internet connection,Personal Computer, and knowledge(Forex know how). Forex Trading is the most ideal business that is capable of making you a millionaire within the shortest time possible.There is possibility of making a big time income.

Potentials of forex trading
Imagine a growth rate of 50% compound interest on an investment of $1000 for 5yrs?
RESULT—>
$1000*.5=$500+$1000=$1500
$1500*.5=$750+$1500=$2250
$2250*.5=$1125+$2250=$3375
$3375*.5=$1687.5+$3375=$5062.5
$5062.5*.5=$2531.25+$5062.5=$7593.75

Benefits of forex trading
  Low or zero cost of transaction
   No restriction to a particular spot
  It is highly economical to start up
        It’s a 24 hours activity
  The market is transparent
  Possibility of predicting price movement is sure
  The market is two-sided
  You can trade on loans of your broker
 


Comments

Post a Comment

Popular posts from this blog

Forex Know How

Know-how is a philosophy; something that you embrace as a fact of life and you commit yourself to its application. Forex Know how is an ability to know how FOREX Market works; it is being in a position to analyze the price action on pairs of currency and open a position on such currency pair. Forex Know how is an all-round knowledge of forex market action. This complete understanding of forex market price movement to the point that nothing confuses you takes into consideration followings:                       i.             The Market Direction                  ii.             Entry point               iii.         ...
Read more

WHEN TO LOOK FOR TRADES IN FOREX MARKET

FOREX is basically a continuous 24-hour open electronic trading session. So the market opens on Sunday 5pm EST through Friday 4pm EST. Rollover at 5pm EST. Trading starts in New Zealand, followed by Australian, Asian, The Middle East   Europe and America. The US and UK account for more than 50% of turnover. Major markets are: London New York Tokyo NB: Trading activity is heaviest when two markets overlaps. More so, nearly two-thirds of any activity occurs in the morning hours while European Markets are open. To select a market and time for trading- Ø New York Market trade times: 8am-4pm EST Ø London Market trade times: 2am-12 Noon EST Ø Great Britain Market trade times: 3am-11am EST Ø Tokyo Market trade times:8pm-4am EST Ø Australia Market trade times:7pm-3am EST
Read more