What is Forex ?
Forex refers to the foreign exchange market and the buying and selling
of these currencies. The currency exchange transactions carried out daily exceed 3 trillion US dollars in the Forex
market making it the largest financial market in the world.
Each and every one of these transactions plays a key
role in establishing exchange rates for currency pairs. For example, when an international institution pays the
financial dues of its foreign employees, the institution converts the foreign currency into its domestic currency.
Over time, these transactions will lead to a change in the exchange rate.
The value of the currency strengthens
when money flows into it and weakens when money flows out. These changes in the exchange rates are what give life to
the Forex market.
Forex traders attempt to predict the direction of the exchange just as stock traders attempt
to predict the direction of the value of a company’s stocks.
Forex traders would buy a currency pair when
they believe that the exchange rate will increase and they will sell the currency pair when they believe that the
exchange rate will decline. As the forex market is a global market, they can do transactions 24 hours a day.
company offers a modern and sophisticated trading platform and advanced graphing software for a successful trading
The United States and Britain hold 50 per cent of the world market.
Why Choose to trade in the Forex market?
The foreign exchange market, shortened Forex,
refers to the buying and selling of currencies and is one of the fastest markets in the world. From 2007 to 2014,
the Forex market has increased by 70 percent with a turnover of up to 5 trillion a day.
Forex trading is in
essence similar to the stock market in which the trader buys at a low rate and sells at a higher rate. What makes
the Forex market more attractive is that you do not need to choose from thousands of companies or sectors, it can be
much simpler than that.
Unlike some other markets, the Forex market does not start at 9 am and ends at 4 pm;
Forex trading can be done 24 hours a day, 5 days a week. Making it easier for the trader to trade online before or
after his working hours. In addition, you can buy and sell at any time in the market as the rates go up and
Unlike local markets, no one can influence the Forex market.
Any trader can open positions at any
time, there is always selling and buying ongoing.
You can make profits from falling and rising market
financial leverage enables investors to open deals with amounts larger than their capital, allowing investors to
take advantage of opportunities in the market beyond their material liquidity.