Forex and Trading
...how it works?
The exchange market has open 24 hours and five day per week.
So you are able to trade (sell and buy) with currencies.
The stock and trade markets are very volatility with many strange up- and downturns in all directions.
This is also a reason, why traders with good knowledge and traders who are willing to take a risk able to earn al lot of money with Forex trading.
Meaning Forex Market (FX)?
Forex is used as a shorty (FX) from the words Foreign Exchange and the meaning is the trading with foreign exchanges and currencies with the daily updated exchange rates.
The Foreign Exchange Market is a global market to sell, buy or hold currencies.
The trader on this Forex Exchange Market can be private persons or international banks or other trading-companies.
Why is Forex trading so attractive?
Everybody know, that the daily-rate from the world wide currencies are subjected often high fluctuations.
Best example in the past, was the Russian currency “Rubel” in the year 2014.
Here can easy see day trades, how fast can be the fluctuations change and the traders can intermittent by for 44,- Euro and just a few time faster for 85,- Euro.
Everybody can easy imagine, that in the day trade market lure high gains but also losings.
Foreign exchange trading with leverage effect
A professional Foreign Exchange Trader are not willing to keep the open trade for long term, like weeks or month.
He will more faster operate and buy and sell in much shorter intervals.
However he invest high amount of money when he trade with the leverage effect (Hebelwirkung).
Exampel of Leverage:
a Leverage from 1 to 100 means:
With just 1000 Dollar own investment, he can with 100.000 Dollar move (trade) on the Forex Market.
Often trades currency pairs are:
- Swiss Franc
- British Pound
If you also willing to invest and trade at the global foreign exchange market,
you first have to decide a basic currency and a against currency.
A basic currency can be the euro ( EUR ) , the US dollar ( USD ) , the pound ( GBP ) , the Japanese yen ( JPY ) or the Swiss franc to be ( CHF ) .
The basic currency will be specified first and the against currency is on the second possition.