An account on Forex Trading

Forex trading also referred as global currency exchange or FX trading is a market that doesn’t have any physical existence. The term Forex implies foreign exchange. The stock traders gather at the New York Stock Exchange floor, and internet and telephones make up their market.

The big players in the market including national governments, the central banks along with commercial banks and multi-national firms, all engage in Forex trading regularly. The primary currency dealings of forex market involve the euro, the English pound sterling, the Japanese yen and the U.S dollar. The Swiss franc and the Australian dollars have gained popularity as well.

Forex trading is considerably simple since the whole currency trading procedure takes over very short span of time, say minutes. Buying $100,000 worth of Euros, require a deposit of $1,000. If the euro climbs up 1 percent vs. the U.S. dollar, you make $1,000 on your investment $1,000.If the euro plummets by 3 percent vs. the U.S. dollar you lose the $1,000 that you risked and you are liable for another $2,000 as well.

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