The forex stands for foreign exchange which is also known by the name currency exchange. It is synonymous with simultaneous buying and selling of currency and also involves the exchange of currencies of two separate countries. Forex is the oldest and largest market in the world and did not stop working even during September 11th attacks. Forex daily transactions may usually range from 1 to 3 trillion dollars. Through forex brokers trading can be started even with only 1$ but usually an amount varying from 1000$ to 10000$ is used.
Forex is considered a unique market because it offers several advantages like high liquidity, efficiency, low cost, unambiguous quotations, relative margin size, etc. “Expect to make too much and you will make too little, expect to make little and you will make a lot.” Is the line that best describes the accurate strategy to use forex. Market movements can be predicted with the help of news forecasts also. Research shows that while 95% of traders generally may loose their money at forex, only 5% gain profit and about 1% make fortunes. Knowledge and experience are considered as assets for forex where as only a little amount of money is required. The phrase “be carful” is best kept in mind while dealing with forex. No “inside information” is available in forex and any significant news is always published so the entire world receives the same news at the same time.
Forex is not a particular individual owned bank. The interactions in forex occur between two participants- the seller and the buyer therefore the forex is an interbank market. It is not partial to any country’s government or any organisation.The Minimum money required to perform a transaction at forex is termed margin and may vary depending upon the chosen broker.
My name's Jim (James) Phillips, I live in sunny Australia, and started trading while in university as a hobby. I quit uni to take up trading full time because I was having so much fun, and making enough money to live off at the time.