What Is Forex Made Easy?
Forex (also known as Foreign Exchange or 4X) is an international exchange market in which currencies are sold and bought, bought and sold, 24 hours a day six days a week. The Forex market that we now know began in the early 1970s, when exchange rates and floating currencies were introduced.
Forex is unique because there are no external controls. With that comes the good and the bad. On the one hand, our societies all seem to be overregulated. On the other hand, the government regulators and private watchdog groups don't think we have enough regulation.
However, many people in the government and private sectors want to change all of this because they feel that an unregulated market is an extremely dangerous market where people and accounts can be wiped out in minutes by unscrupulous profiteers. More than likely regulation will occur sooner rather than later. But like anything this large, there are hundreds of thousands of players, and change is slow.
The Forex market is also a market that cannot be easily manipulated. However, there are times the "big players" can and do manipulate the market and it's wise to find out when those times are (think holidays or whenever regular Joes like you and me have more time and energy to invest). More on that later.
Forex is also the largest liquid financial market in the world, with trade reaching between $1 and 1.5 trillion US dollars (USD) daily, every day. Think about that figure. Because it is such a highly liquid and fast-paced market, it is clear that one investor could not significantly affect the price of a major currency.
Market liquidity essentially means that traders and investors can open and close their trades within seconds because there are always willing buyers, sellers, and brokers (who will promptly take a fixed amount of money on each trade executed).
In 4X, there are four major currency pairs: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
The main currency pairs are typically traded in 100,000 base units. So, if you were buying EUR/USD at 1.09 you would be paying US Dollars (USD) for Euros as follows: 1.09 X 100,000 units = $109,000 US Dollars for 100,000 Euros. Don't worry, though, you won't need to come up with $109,000 USD to learn this skill. Instead you'll only need a small percentage of that amount, and it's called trading on margin or margin trading. This will be an entirely different lesson. Forex Made Easy is here to assist and we will be answering those questions as they arrive. - 23167
Forex is unique because there are no external controls. With that comes the good and the bad. On the one hand, our societies all seem to be overregulated. On the other hand, the government regulators and private watchdog groups don't think we have enough regulation.
However, many people in the government and private sectors want to change all of this because they feel that an unregulated market is an extremely dangerous market where people and accounts can be wiped out in minutes by unscrupulous profiteers. More than likely regulation will occur sooner rather than later. But like anything this large, there are hundreds of thousands of players, and change is slow.
The Forex market is also a market that cannot be easily manipulated. However, there are times the "big players" can and do manipulate the market and it's wise to find out when those times are (think holidays or whenever regular Joes like you and me have more time and energy to invest). More on that later.
Forex is also the largest liquid financial market in the world, with trade reaching between $1 and 1.5 trillion US dollars (USD) daily, every day. Think about that figure. Because it is such a highly liquid and fast-paced market, it is clear that one investor could not significantly affect the price of a major currency.
Market liquidity essentially means that traders and investors can open and close their trades within seconds because there are always willing buyers, sellers, and brokers (who will promptly take a fixed amount of money on each trade executed).
In 4X, there are four major currency pairs: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
The main currency pairs are typically traded in 100,000 base units. So, if you were buying EUR/USD at 1.09 you would be paying US Dollars (USD) for Euros as follows: 1.09 X 100,000 units = $109,000 US Dollars for 100,000 Euros. Don't worry, though, you won't need to come up with $109,000 USD to learn this skill. Instead you'll only need a small percentage of that amount, and it's called trading on margin or margin trading. This will be an entirely different lesson. Forex Made Easy is here to assist and we will be answering those questions as they arrive. - 23167
About the Author:
Chan Boldene is a freelance writer who enjoys writing about many subjects including Forex Made Easy, Chan also enjoys directing others to his dear friend's Daily Devotions at Devotions ChopChopsite.
posted by X - Men @ 2:57 AM
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