Forex is simply a change in currency. When will you need to do this? When you go overseas for a holiday, or a business trip. You need to change your money from your countries currency to the currency of the country that you are visiting. This exchange can be use to explain what Forex is about.
When you arrive at the money changer, you will be able to see pairs of currency on the display board telling you how much you will get from the amount that you want to change. When you change you money, you re actually performing a Forex transaction. You can either buy or sell the money that you have with you.
Now, the Forex market is huge. It is the largest financial market in the world. With 4 Trillion of trading volume per day, Forex is much bigger than the stock market which have a 74 billion worth of volume traded every single day. Therefore, can you feel the enormous possibility of earnings through it? If we can just take a tiny little amount of that 4 trillion every single day, wouldn't it be great?
Now, we say it is very much different from the stock or future exchange market because Forex is an interbank. This means that it is an over-the-counter market where there is no single universal exchange for a certain pair of currency. It is a 24 hour market operating daily 5 days a week. The exact time will differ depending on the Forex Broker that you use.
There is the European session. When it ends, the Asian session or the US session will begin. So there is no need for you to wait for the market to open in order to start trading like what you need to with stock trading.
How can you trade Forex? It is very simple. What you need to do is to search for Forex Broker that you are comfortable with. The broker will provide you with the software for you to install the trading platform on to your personal computer. Obviously, you will need to have a stable internet connection to trade. Once your account is verified, you can go ahead and fund you account. Difference brokers will allow different minimum deposit. Some go as low as $100 to start a micro account but that might not be such a good idea. Choosing a broker will be one of the most important parts in Forex Trading because the spread provided by the brokers are all different. So, choose wisely. Just for your information, I choose FX Primus, a Broker that is audited by Ernst & Young.
Ultimately, you should know that great earning capabilities do comes with high risk. This is very true and in Forex, there are risks involved and for starters out there, trade only with the amount that you are ready to lose. Don't start trading and put all your money in straight away.
Learn more about Forex Trading! Join thousands of traders out there and make a living trading forex. Learn Forex Trading! Now!
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