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What Is Forex Trading All About Ideas For You

What is forex trading all about


What Is Forex Trading All About: There are so many users who do not have sufficient knowledge about Forex Trading. Today I am going to tell you about some forex basics. But, before I tell you about Forex basics, you should know that we can take this for both educational and fun. If you want to learn anything the most important part is fun. Without fun, we can not learn anything properly. When we do anything in the fun mood, then the that must be perfect. Without fun, nothing happens properly. So, fun is essential. Now, let’s start about the topic:

What Is Forex Trading All About:

The Forex Market:

The forex market is nothing but a place where all the global currencies are traded freely. We all know that almost $5 trillion hands exchanges daily here. It is the single largest market and therefore it is the most liquid market in the world. Users often call it as the “FX market” and it’s longer version is “Foreign Exchange Market”. All these are interchangeable.



In this respect, there may arise a question in your mind. Why does Forex market be so popular among the users? The answer is very simple. Besides being the largest, most liquid market, we can find the forex market opens for 24 hours a day and 5 days in a week. It means that you can follow up the market until your eyes can feel sleepy. So, it is very easy to follow up the price tick.

The stock market has the central marketplace like NYSE. But, the forex market has no such central marketplace. Rather trading is conducted electronically over-the-counter (OTC). It indicates that trading is conducted between computer networks around the world instead of any centralized marketplace. The largest financial centers around the world are New York, London, Singapore, Zurich, Tokyo, Paris, Hong Kong, Sydney, Frankfurt. As forex market is totally universal, it needs a 24 hours marketplace.

The Players:

If you want to learn about forex basics, you should have a concrete knowledge about this. Many retail traders (you and I) always forget about it. But we should not avoid this. Actually, the big boys are the real ‘market movers’. If you want to develop in forex trading, you have to understand more about these players. There is no way to get rid of this.

Banks:

Actually, banks play a vital role in forex trading. You should have a knowledge that banks have a lot more resources than you and me and thus are on a much different playing field. When a bank facilitating transactions they are also called ‘dealer’ and they facilitate client trades through a trading desk where the bid-ask spread is their profit.

forex trading basics

Central Banks:

Though banks are the largest players in the forex market, central banks are no doubt the most important. There is no argument. Central Banks set the way for how a particular currency pair will trade in the marketplace. I am not going to say about the matter detailly, otherwise, I have to enter into economics to relate that.

Central banks always play a key role to make their currencies appreciate or depreciate. For example, you may learn that a central bank may decrease its own currency by creating more of the currency. Later it may use to purchase foreign currency. In this respect, central banks play a vital part. Central Banks effectively decreases the domestic currency and pave the way of competition for export in the global market. Central banks always give the consciousness to understand how the market runs.

Corporations:

If you are interested to trade in the forex market, you should have a concrete knowledge about the corporation. It plays the most important part in forex trading. Corporations mainly engage in internet trade, both importing and exporting. It is used to pay for goods and services in the forex trading market. For example, a British company may buy some materials from America and sell the product to China. So, it is very much necessary to convert dollars, euros, scent, rupees etc. For every transaction, it happens in the forex market. It is essential to have a complete knowledge of the corporation.

Retail Traders(You and I):

Retail Traders are the peons of the forex market. Comparatively, we make up a very small percentage of the market. Though it is very small in size in the retail trading, it is growing rapidly. In a sentence, we can say that forex trading is the fastest growing market at the moment. Primarily retail traders make currency trades in two different ways.

Technical traders typically make trades based on technical indicators, price patterns, support, and resistance etc. If you want to learn more about technical traders, you should log on to Forex Price Action Trading Course.

Fundamental traders make currency trades based on things like inflation rates, momentary policy expectations, interest rate parity etc. These traders are mainly interested in what the central banks are doing. It is a popular way of forex trading.

Related posts: Most successful forex trading strategy

Investment Managers And Hedge Funds: (What is forex trading all about)

After the importance of banks, portfolio managers, hedge funds, and pooled funds are the second largest players in the forex market. Generally, investment managers trade currencies for large accounts such as pensions. In order to trade foreign securities, a manager will have to buy or sell currencies of the manager is managing an international portfolio. You should also know that hedge funds mainly execute speculative currency trades.

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Getting A Piece Of The Pie:

When I first heard about forex trading, I was scared very much. I was afraid to compete with banking giants like JP Morgan and Goldman Sachs. But, the great news is that you have no need to compete with these guys to make substantial money in the forex market. In the age of internet and trading, you can join these guys at any time. Even at your home, you can do trading with your favorite activities.

If you like this article(What is forex trading all about) and get some important information about forex trading, please like this article(What is forex trading all about) and share it with your friends. And also give valuable comments which will help me to be perfect in my future articles. I am eagerly waiting for your comments.

Note:  Be aware, in India, Foreign Exchange or Forex trading is not allowed(You can trade Forex in India only USDINR, GBPINR, JPYINR and EURINR with Indian Exchanges (NSE, BSE, MCX-SX) ).

About the author

Sudipta Pradhan

Welcome to ShoutersVoice.com to all of you. I am Sudipta Pradhan, a professional blogger from Kolkata, India. I am a learner of Computer Application and from there I start to love Internet and computer. This love gradually becomes a passion. I have a huge desire to know more about computer and internet, And this desire paves the way to acquire some experiences. These experiences enrich me to learn many unknown things about computer and internet. I want to share these experiences with you.

1 Comment

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