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Ocean Wizdom
If you're new to the concept of forex trading, the content below will help you gain an understanding of the forex market, how it works and the most common myths that were widespread in the foreign exchange market
Foreign exchange or forex trading is the exchange of currency from one country to another. In other words, as a Forex trader, you trade money. For example, you can sell U.S. dollars and euros to buy, or buy U.S. dollars and sell Swiss francs. In many ways, the price of the currency of a country depends on the relationship between the two economies and their future potential. Its rate depends, among other things, that compared the economy to other economies. Purchase of currency of a country is like buying a share of the economy. If the economy is doing well, raising the value of your currency, you can take advantage.
Unlike traditional and other equity markets, no position in the central business exchange market. In general, the trade is done using the telephone or the Internet. The main market currencies is the "interbank market", which contains a network of banks, insurance companies, corporations and other large financial institutions.
Some of the major currencies traded are the U.S. dollar (USD) Euro (EUR), Japanese yen (JPY) British pound (GBP) Swiss Franc (CHF) Australian Dollar (AUD) and New Zealand (NZD). They are known as "major" because they are most frequently traded currencies. Here's a short list to get you started: USD / JPY, USD / CHF, GBP / USD, EUR / USD
To be useful in all it must be related to something else. Think of a part of Microsoft by the U.S. dollar is the symbol / MSFT USD, while you would buy and sell your MSFT USD. Currencies are traded in pairs so that when you buy one currency and selling another. For example, you buy Euros and sell the U.S. dollar (EUR / USD).
Benefits of Forex Trading
There are many benefits to the retail forex trading. Many people choose it because they can not include fees, or brokers, or a 24-hour market with high liquidity and low barrier to entry. Together, these advantages of the foreign exchange market is surrounded by many myths. Some common myths are:
Finally
As a retail trader intelligent you need to stay away from the stereotypical myths. Do not use shortcuts or look for easy money, you have burned. Remember, there are no secret formulas or scientific methods that can guarantee your success, rather hard work and ask lots of questions. However, it is advisable to seek professional help with the basics, such as understanding of technical and fundamental analysis, managing money well, and most important - your trading psychology (emotional intelligence).
