Forex trading basics: Learn forex trading with 5Stars Forex
The foreign exchange market (forex, FX, or currency market) is a worldwide, decentralized, over-the-counter financial market for trading currencies. It is the largest financial market in the world with a volume of over $5.3 trillion a day worldwide. Total forex trading volume is well over three times the total of the stocks and futures markets combined.
The majority of trades are made between banks and other financial institutions which simply need to convert one currency into another. Yet at the same time, Forex trading is highly attractive to individual traders who want maximum leverage on their investments.
Learning Forex: About the Forex Trading Market The foreign exchange market is the virtual location where global currencies are traded. Though the total volume ebbs and flows, the Bank for International Settlements reported that the forex market trades in excess of $4.9 trillion U.S. per day. This makes it the largest electronic market, essentially dwarfing the stock market
What is Currency Trading? Trading currencies is the act of making predictions based on minuscule variations in the global economy and buying and selling accordingly. The exchange rate between two currencies is the rate at which one currency will be exchanged for another. Forex traders use available data to analyze currencies and countries like you would companies, thereby using economic forecasts to gain an idea of the currency's true value.
The Benefits of Forex Trading Unlike stocks, forex trades have low, if any, commissions and fees. Even so, new forex traders are always advised to take a conservative approach and use orders, like stop-loss, to minimize losses. High leverage, which should be prudently applied, gives traders the opportunity to achieve dramatic results with far less capital than necessary for other markets. Forex trading requires training and strategy, but can be a profitable field for individuals looking for a lower risk endeavor. Learning currency trading gives traders a range of exciting new opportunities to invest in.
Risks of Trading FX The increased amount of leverage means that traders can lose all, or a large portion, of their trading capital if the market makes a significant move against the trader’s current open position/s. Therefore, margin FX is a high risk product and may not be suitable for all investors as traders can lose more than their initial investment amount.
Why people choose 5StarsForex?
In today’s world we are faced with many choices and choosing a Forex broker is no different. We’ve been in the retail Forex business longer than most and we understand that individual traders have different needs and wants. That’s why we continue to evolve to ensure you can trade with 5starsforex in a safe, informed and supported environment.
- Online community
- Easy to start trading
- Personal Service
- Easy choice for every trader
- Transparent cost
- Forex specialists
- Continual growth with Five Stars Forex Ltd
- Security of funds