What is FOREX today?

Forex has existed since the 70s of the last century, but despite this, in the modern world not everyone has an understanding of what Forex is and how it works. Before the proliferation of the Internet, only professional traders had access to quotes and trading tools. Now anyone can connect to the terminal and earn on Forex, buying and selling currency and other assets.

Modern technology allows you to work on Forex almost with a calculator only, the main prerequisite is Internet access. Software becomes simpler and simpler every year, and the number of clear and useful video tutorials for novice traders is already in the thousands. The industry of financial instruments trading continues to develop by leaps and bounds.

What is FOREX

Forex is a large market for international currency exchange, the quotes of which are set at free prices, i.e. are not limited by artificial limits. The daily trading volume reaches 7-8 trillion US dollars.

The main subjects of Forex are commercial organizations such as brokers, banks, investment funds, as well as private individuals - investors and traders who get access to trading on the basis of a license that gives them the right to become full-fledged market participants.

Trading on FOREX is carried out via terminal, which that provides access to quotes and allows you to make trades in the market. Brokers are intermediaries between traders and liquidity providers - large banks.

At its core, FOREX is a market with goods and services, a trader in such a market acts simultaneously as a buyer and seller. The task of the trader is very simple: buy low and sell high.

Even without financial knowledge, it is easy to see opportunities for earning: take 2014 as an example. US dollar was worth 32 rubles, and in a couple months it is 66 rubles. Imagine that you then ought $10,000 at 32 rubles and sold at 66. Your would have earned 340 000 rubles. And many Forex traders have done just that.

How to make money on Forex

The Forex market has significant advantages over the stock market: a small Deposit of $100 is enough to start earning income. Also, Forex is attractive because in a short time the exchange rate can change greatly and the trader does not have to wait for a profit for a whole year. Change in the price of a currency pair in a day can give huge profit.

Forex trading involves high risks, which is why this market is often compared with gambling. Many beginners lose their deposits, making unprofitable trades due to lack of experience and knowledge in trading. That is why it is necessary to learn at least the basics of Forex trading, and do not forget to constantly hone your skills.

Advantages of Forex trading:

• You work for yourself. Trader's income depends on him only. You do not need to go to work every day at a certain time and don’t have any superiors.
• There is no limit to income. One can earn up to a million dollars a month or more depending on the size of the initial investment and the level of the trader's skills.
• Flexible schedule. You can work at any time of the day and decide how much time to spend on trading by yourself.
• You can trade anywhere. You can trade from home, from the café with a cup of coffee in hand or while drinking Pina-colada in the Cayman Islands if, of course, there is Internet access.
• Mobile Forex. Large brokers have mobile applications which can be used for trading or quick responding to changes in exchange rates.

However, successful trading depends on long-term hard work and training in profitable trading requires considerable effort and time. In order to increase the chances of success, it is important to follow three simple rules:

• Risk management. Trading is based on careful analysis, but there is always the possibility of an unfavorable outcome. No one can be completely sure where the price will move tomorrow or in 5 minutes.
• Trade only for amounts that you are willing to risk. Under no circumstances can you trade on borrowed money, especially if you are a beginner.
• Constantly learn and develop strategies. If you can not make a profit, you need to analyze the trade and change the approach until the result is achieved.

How to start trading

Before you start trading on Forex, you need to register with a broker, and then you need to install a trading terminal, The most popular are considered to be the MetaTrader 4 and 5 platforms. The list of reliable brokers can be found on specialized websites, for example https://trading-go.net/

MetaTrader 4 trading terminal window

Trading platforms display real-time charts and currency quotes, have technical analysis tools and a large number of trading indicators for price forecasting.

To learn Forex trading by yourself is not a difficult task even for a beginner anda relatively short time is required. There are almost no problems with this, as most of the major brokers provide training materials and courses for Forex trading in an accessible form, as well as assistance from their experts and analysts. In addition, there are forums where you can talk to experienced traders, get advice and find solutions for trading automation. This is enough to form a solid base for further development. If they wish so, traders can take advanced paid courses and increase trading efficiency.

For safe trading, beginners can open a demo account and practice on a virtual Deposit, and then go to trading for real money.

Conclusion

When trading on the Forex market, we one should not forget about the basic rules, and should pay special attention to Analytics, learn to form, combine and improve various trading strategies. It is better to first get an experience that will bring money later than to givelose money to get experience.

Do you want to try yourself as a trader? The link allows you to select a broker and open a demo account.

Good Luck!