What is a Forex and how can I make money using it?

Sunday, February 23, 2014 , Posted by Ryanita at 2:59 AM




SomeGuy


I am clueless on Forexes and would like to know how they work.


Answer
FOREX - the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.

Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.

what is currency trading (FOREX) and how does it work?




metal m


any help is appreciated
Cheers guys, thank you for taking your time to answer the question, so basically if you dont have at least $100,000's dont even think about FOREX trading?



Answer
Forex trading is currency trading. You simply exchange one nationâs currency for another in the hope of making money when the exchange rates change. The rates are constantly changing due to market news, national events, changes in values on a countryâs stock exchange, etc.

At the most basic level, imagine you exchanged some US dollars for British pounds. You might sell $1,000 to buy £650. Within a short time the rate changes in your favor so you change them back again. Now with the new rate you get $1,010 for your £650. You just made $10 or 1% of your investment.

The best way to get started finding out how forex works, is to do some reading online and then open a demo account. A demo account is a practice account where you make trades using play money, most brokers offer a demo account.

Once you've acquired some skills, and feel you have a good tested strategy, you can move on to a live account where you trade with real money.

Do not start trading a live account until you've practiced on your demo for at least 6 months. While trading forex can be a very nice way to make a living, you can also lose big quick.

Good luck to you.




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