What is Forex?
Forex or spot forex is the buying and selling of the foreign currency. In the Forex market, you can sell the currency of one country and buy the currency of another country.
For example, the currency of America or the USA is the dollar, the currency of Britain or the UK is the pound. In the Forex market, you can buy dollars by selling dollars or by selling pounds. Apart from dollars or pounds, there are other currencies that you can buy and sell in the Forex market.
How to make money from the Forex market?
Currencies of different countries are always changing. You will see in the newspapers that sometimes the dollar is getting stronger against the money, and sometimes the money is getting stronger against the dollar. This is the opposite of most of the world’s currencies. So, if you have bought dollars, you can sell dollars and buy euros if the euro goes against the dollar. Again, if the euro is strong against the dollar, you can get more dollars by selling the euro.
Maybe you had 100 that you sold and bought for 80 euros. He later sold the euro for 120. This way you can earn. We can make a profit only if the share price increases (buy) in the stock market. But in the forex market, whether the currency is strong or weak, we have the opportunity to make a profit, which is the biggest advantage of the forex market.
Advantages of Forex trading:
- In the past, only the rich or the banks had the opportunity to trade in the Forex market. But with the advent of different forex brokers and increasing competition, anyone can trade in the Forex market from any country in the world.
- It is possible to start forex trading with only 1 dollar. In addition, almost all brokers will allow you to trade for free demos, that is, with virtual money. So first you can prepare yourself by trading demos for free and you can start real trading by depositing success by trading demos.
- The scope of the Forex market is very large and it is not possible to manipulate this market. The largest stock market in the world is the New York Stock Market and the size of the Forex market is 25 times larger than that. Remember, the value of the dollar or the euro is not determined by the government of any country. The value of the currencies of different countries varies according to the economic situation and financial events of different countries. Dollars or euros will be bought and sold in all countries of the world at the same price at which you buy dollars or euros.
- There is a large leverage or loan facility available for trading in the Forex market, and so you can make a good profit with very little market movement.
- Scalping is a very popular term in Forex. This means open trade for a very short time. It is possible to make a good profit with very little change in the forex market. Many people open a trade for 10 or 15 seconds and exit the trade with a profit.
- Forex Market is open 24 hours a day, 5 days a week from Monday to Friday. And so, whether you are a trader or an employee, you can trade at your convenience in the Forex market.
- You can do Forex trading sitting at home, there is no need to go out. And so you can give a lot of time for the family.
- In order to trade in the Forex market, you have to do everything online and it is very easy to deposit or withdraw from the account starting from the account opening.
- If you can trade well, many will be encouraged to deposit with you and in that case, you can manage their trade and you will get a part of their profit.
- Above all, a successful and efficient Forex trader can earn a lot from this market.
It is worth mentioning that in order to be a skilled and successful trader, you need to study a lot about the Forex market, to qualify yourself for this market. Anyone can make a lot of money from the forex market without knowing anything. Remember, the forex market is as challenging as the stock market. Unknowing may be the initial success that the stock market has for many. But in order to survive in the long run, there is no alternative but to become an expert.
In other words, there is no such thing as a recession in the forex market. Because in the stock market you can only buy, in the forex market you can buy or sell both.
When the stock market is going down and down, in forex, one currency is always up!