Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.
Public interest has steadily grown in the forex market since the relatively recent advent of online forex trading for retail clients. Most online forex brokers offer their proprietary trading software free of charge to their clients, as do some independent trading platform developers.
As a result, getting started trading forex can now be as easy as getting access to a trading platform from your computer and funding an online forex trading account with a retail forex broker. View our top forex brokers list.
A forex market will be present when two countries are involved in trading, and when money is traded for goods, services or a combination of these things. Currency is the money that trades hands, from one to another. Often times, a bank is going to be the source of forex trading, as millions of dollars are traded daily. There is nearly two trillion dollars traded daily on the forex market.
You will log on and create an account. Entering information about what you are interested in and what you want to do. As you continue on with this fake account you will see first hand how to make decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and play from there.
If you want to be involved in forex trading, you must get involved through broker, or a financial institution. Individuals are known as spectators, even if you are investing money because the amount of money you are investing is minimal compared to the millions of dollars that are invested by governments and by banks at any given time.
Forex market trading is trading money, currencies worldwide. Most all countries around the world are involved in the forex trading market, where money is bought and sold, based on the value of that currency at the time. As some currencies are not worth much, it is not going to be traded heavily, as the currency is worth more, additional brokers and bankers are going to choose to invest in that market at that time.
The currencies that are traded on the forex markets are going to be those from every country around the world. Every currency has it own three-letter symbol that will represent that country and the currency that is being traded. The Japanese yen is the JPY and the United Stated dollar is USD. The British pound is the GBP and the Euro is the EUR. You can trade within many currencies in one day, or you can trade to a different currency every day. Most all trades through a broker, or those any company are going to require some type of fee so you want to be sure about the trade you are making before making too many trades which are going to involve many fees.
Forex brokers range widely from the highly reputable and well regulated firms, handling many accounts honorably, to those engaging in questionable pricing and order execution practices, to outright fraud in some cases, like Refco, a highly publicized bankruptcy of a forex and commodities broker that attempted to hide $430 million in bad debts from investors and clients.