Basics Forex
What is the Forex?
The FOREX for FX or Spot is a 4 trillion dollar a day exchange trading..well money. You can trade the currency of one nation for the currency of another. The most popular forex options are:
| Symbol | Country | Currency | Nickname |
| USD | United States | Dollar | Buck |
| EUR | Euro members | Euro | Fiber |
| JPY | Japan | Yen | Yen |
| GBP | Great Britain | Pound | Cable |
| CHF | Switzerland | Franc | Swissy |
| CAD | Canada | Dollar | Loonie |
| AUD | Australia | Dollar | Aussie |
| NZD | New Zealand | Dollar | Kiwi |
Why Trade on the FOREX?
The big reasons are:
- Portfolio Diversification
- By trading on the FOREX with your stock portfolio and planning carefully you may be able to take more risk as it is spread out in more uncorrelated areas. Also, this is another area that may fit your trading style / personality better.
- Available Hours
- Trading on the stock market may not fit with your 9-5 job, but the FOREX is open nearly 24 hours per day. While all currencies may not have the same movement at all hours of the day, you should be able to find something to trade that fits your plan.
- No commissions
- While not directly, there is a spread, but this is often much lower than the stock market where there is a spread and a commission. This is particularly good if you are a very high trade volume person or have a very small account. The spread and commissions (often called slippage) can really kill a small account.
- Leverage
- If you have found a high win to loss ratio strategy leverage may really be your friend. The FX is the highest leverage available especially with so little money required.
- High Liquidity
- The spot market has approximately 16 times the volume of the New York Stock Exchange. This provides a lot more opportunity to safely enter and exit a trade at their chosen price points. This is really good if you have to set your entry and exits and leave your computer.
What Do I Need to Start Trading?
- A high speed Internet connection. You’ll go crazy if you attempt to trade on dial up.
- $200 minimum to start a micro account. Though you may get really frustrated with this little money, $1000 may be more appropriate to start.
- A game plan
Forex is a good place to cut your teeth on trading because generally it’s a slower moving market and because it’s so large it’s harder for an individual to manipulate the market causing you to get blind sided.
So go ahead, read up on more FOREX trading strategies (more to come on EasyLearn) and give it a swing at one of the free FOREX trading accounts.
Related posts:
- Forex Trading Margin
- Forex currency trading from home
- Forex Trading Hours
- Forex Market Speculation
- Forex Pairs
[...] market news by unknown « STOCK MARKET WATCH, Monday December 15 – Democratic [...]
[...] news by unknown « Forex Trading: EURUSD backs off as key resistance approached | FXDD Learn Forex [...]
[...] news by unknown « Download An Online Forex Trading Software | Easy Forex Watch Experiences With [...]
Forex Marketing is great. There is a lot of chances to make fast money on it.
Great write up you have there, explained how to trade currency is in a nutshell and also the various factors that influences the exchange rates in the forex. Keep the great posts comin!