Forex (The foreign exchange market or currency market) is such a virtual market place where one currency is traded for different currency in order to make profit. In this market you can trade different foreign currency to make profit. For example, you can sell US dollar in order buy British pound or you can sell British pound in order to buy US dollar in this market or you can buy any other foreign currency for your own currency. It is one of the biggest virtual market places in the online world.
Currency rates of different countries are always changeable. You may have read in newspaper that sometimes, dollar becomes stronger than pound and sometimes pound becomes stronger than dollar. It becomes so against most of the currencies worldwide. So, if you have dollar and the rates of pound against dollar decrease then you can sell your dollar to buy pound and when the rates of pound will increase against dollar then you can sell your pound and buy huge amount of dollar again. In this market in the both case you can make profit.
Some advantages of trading on Forex Market are mentioned below:
- Anyone can trade:
In the past, only rich people and banks used to get opportunity to trade on the forex market. But now with the change of time, due to the emergence of various Forex Brokers and growing competition, anyone can trade on Forex market from any country of the world.
- Facility of using demo dollars
It is possible to start Forex trading with just 1 dollar. Besides, almost all Brokers will allow you to trade on forex market using demo dollars (virtual money). So, first of all you can prepare yourself by trading with demo dollar on forex. And then you can start a real trade with real dollar. In other words, I mean that you can test out every platform using demo dollar.
- This market can’t be manipulated:
Forex is a very large foreign currency market and this market can not be manipulated. The biggest stock market in the world is the New York Stock Market and the size of the Forex market is 25 times larger than that. Remember, the prices of the dollar or the euro are not fixed by any country’s government. In the context of economic conditions and financial events of different countries, the currency prices of different countries change automatically. If you buy pound at $1.1 on forex market then it would be traded worldwide at the same rate.
- It is open for 24 hours:
Forex Market is open from Monday to Friday, 5 days a week for 24 hours. For this reason you can trade on forex whenever you get time.You can trade here for very short time – even for 10 to 15 seconds.
- Trade can be run from anywhere:
You can trade on forex from anywhere of this world and even from remote place – if internet facility is available.
- Facility of getting share from others’ profits:
If you can trade well, many people will be encouraged to deposit with you and in that case you can run their trades and you get a share from their profits.
Above all, a successful and efficient forex trader can earn huge amounts from this market. At the end of discussion it should be mentioned that to be a skilled and successful trader, you will have to study a lot about Forex market, make yourself eligible for this market. And then success will knock at your door.