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What is Forex?

Forex Basics 

What is Forex? This is a question that is frequently repeated in the minds of those who see the name Forex but don’t know anything about it the topic. Our duty is to clarify and explain everything related to Forex so that the important question ‘What is Forex?’ is answered.

First things first, let's highlight that the Forex market is one of the biggest global financial markets, if not the biggest ever. It has the largest financial liquidity, of up to $ 4 trillion a day, which does not exist in any other financial market and is traded in this market on currencies, commodities and metals.

How is trading done in Forex?

Trading is done through the purchase or selling of currency pairs and each pair consists of two currencies, which means that the trader buys a currency and sells another one in return. There are a couple of pairs that are known as primary pairs. These include:

Euro/Dollar, Yen/Dollar, Euro/Yen, Pound/Dollar, Dollar/Frank, Sterling Dollar/American Dollar, New Zealand Dollar/American Dollar and others.

The trades are commenced based on a clear trading strategy which means that there are both short term and long term trading options.

The seriousness of the Forex market

There are a number of novice traders who are afraid to enter the Forex market because of the high risk inside. There is real risk so we must make it clear to all traders that the Forex market is a serious market. Much depends on trader himself and not necessarily the Forex market which is dependent on the trading method selected and the trading basis, of which there are many. Also important is how the trader administers his capital in a form that enables him to prevent it from corroding. The first of these methods is not starting any deals until fundamental analysis and technical analysis is done by trader. These two types analysis are taught from the start of trading and allow persons to develop a clear plan for trading to reduce risk in the Forex market.

The trader should be aware that he must attain a lot of the attributes that would enable him to succeed. These include contentment, patience, avoiding greed and the ability to resist temptations.

Forex market is the best

Of all the financial global markets, Forex is known for its working hours being 5 days of the week for 24 hours. This means that trading is available anytime, day or night. This makes Forex more special since along, with its large financial liquidity and the large size of trading, it makes whoever trades in the Forex market the owner of the largest profit rate than the rest of the global capital markets.

A demo account is available to traders and can be used in training. It does not only need to be used in the beginning, but  is also important in the training and development of trading strategies. The demo account has the actual prices for the markets but functions by using imaginary money. This means that it is not possible for a trader to lose any money on this account. That's what makes it an excellent start-point for traders.