Forex Trading: 4 Simple Pre-requisites
Forex is is an acronym for Foreign Exchange market and it is the international currency market. It is the largest financial market in the world, with a daily turnover of over 5.4 trillion dollars.
Forex trading consists of buying and selling currencies, that is, money. Currencies are traded through a broker or dealer and are traded in pairs, for example euro and US dollar: (EUR/USD pair).
You don’t really buy or sell anything physically. Think of buying foreign exchange as buying a share in a country’s economy, as the price of its currency is a direct reflection of what the market thinks about the present and future state of the country’s economy. In Forex, one trades in pairs of currencies. The price of a certain pair of currencies reflects the economic conditions of a certain country against the country of the other currency pair.
When does Forex trading take place?
The Forex market is unique, open 24 hours a day. From Tokyo to New York, passing through London, the market moves and can trade at any time, day or night. And Unlike other financial markets, the Forex market is decentralized and has no physical location.
Requirements to Start Trading in Forex
Let’s start with the basic needs to trade Forex from home.
There are 4 requisites to trade in Forex:
- Personal computer/tablet/smartphone
- Internet connection
An experienced trader can make significant profit, not only every month, but also every day. On the contrary, if you don’t learn and train, the significant gains will almost certainly turn into significant losses. Don’t worry, training and learning in Forex will only cost you, in principle, your time. Practically all brokers allow you to open demo accounts where you don’t spend a penny and you have virtual money to spend on your training with real-time market data.
The overwhelming success of this business that more and more people are targeting every day lies in all the advantages it offers over traditional businesses:
- No boss
- No customers
- No strict timetables
You can trade from home, when holidaying and virtually anywhere else and make a living on Forex. You don’t have to carry your PC/laptop everywhere, as there are brokers who offer their trading platform for smart phones.
Hi, I am Nikesh Mehta owner and writer of this site.
I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.