What Is Forex?-->Foreign Exchange
Any type of financial instrument that is used to make payments between countries is considered foreign exchange.
The list of instument includes:-
- electronic transactions
- paper currency
- checks
- written orders called bills of exchange
What Is Forex Tradig?-->Forex Trading is trading currencies from different countries against each other.
For example:-
in Europe the currency in circulation is called the Euro,and in the United States the currency in circulation is called the US Dollar.An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. his is called going long on the EUR/USD.
How You Make Money in Forex
For example, if you had purchased 1,000 Euros in January of 2009, it would have cost you around $1,200 USD. Throughout 2009 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.
Some of the benefits of trading the Forex market are:-
- Superior liquidity.
- 24hr Market.
- Leverage trading.
- Low minimum investment
- Low Transaction costs
- Specialized trading
- Trading from anywhere.
- Liquidity
- Profit potential
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