Forex currency trading is one of the largest markets in the world and in simple terms one can refer forex exchange as changing money or currencies. Also the currencies of the world need to be changed continuously and so that the trade in between the countries is present. The biggest advantage with this market is that it cannot be affected by any one person or any one company, since the market is so huge.
About
half the transactions of forex take place in the United States of America and
the United Kingdom. And the currency pair which is traded the mostly commonly
throughout the world is the EUR/USD.
Forex
trading simply means the selling as well as the buying of currencies at the
same time. Even people are new to forex trading can trade currencies in forex
through the brokers. Some of the most common pairs which are traded are the US
dollar (USD), Euro (EUR), CAD, GBP. The first currency pair that is traded in
the forex market is referred to as the ‘base pair’ and the pair with which it
is traded is known as ‘quote currency’.
Knowing why to trade forex?
One
must not be sure of why to trade in forex, keeping in mind that there are so
many trading going on in the world like stocks, equities and much more. Let’s
take a look at why you should trade in the currency market.
Trading
round the clock
Trading
of currency pairs is available twenty four hours of the day. This trading
becomes easily accessible to people during day or night. Since many people are
in job or busy during the day with household chores, hence it becomes difficult
to trade during the day for them.
Trading
rising and falling markets
In
case of forex, rising and falling trades both can be traded and this is the
best part which traders simply love about it. Trading can be done when the
trader feels the price of any particular currency is going up or even if it
will go down.
Leverage
is another added advantage
The
leverage which is offered to the traders is so high that they simply love to
trade in the forex market. The high leverage that is given to the traders helps
them attain profit in the market.
Finding
opportunities in the volatility period
When
the market opens or closes instantly, there are chances of the gaining high
during these times. Hence traders can find opportunities in the volatility
period. One thing the traders have to be cautious about is that although the
traders can get opportunities during this time, there are also risks involved
in it.
