Top Forex Brokers – What is forex trading ? Forex trading is the trading of currencies from many different countries with the aim of making a profit. In this case, forex is short for Foreign Exchange (foreign exchange). in the imagination of the layman, currency trading is exchanging currency at a money changer, That’s not wrong, but it was what many people did in a time when there wasn’t an advanced internet like it is today.
Today’s currency trading and exchange is carried out with the latest technology, using the metatrader platform which can be done via computers and smartphones as long as they are connected to the internet. the fundamental difference between manual currency exchange via money changers and forex trading over the internet is in their needs and objectives.
Generally, a person’s purpose for buying and selling money in Money Changer is because of the need to exchange currency for transactions in different countries, so there is a physical exchange of money. Meanwhile, forex trading is done online for the sole purpose of making a profit. It should be understood, forex trading is a business activity, investment, and can even be a profession.
Who is the forex trading market participant ? On an international scale, trading in foreign exchange ( forex ) is carried out by various parties, ranging from governments, central banks, multinational companies, to certain individuals who have large amounts of assets ( Big Player ). They all meet in the international forex market, but in this case it is not like a traditional physical market but through an internet network that connects all trading networks around the world.
Those who enter the forex market have the same goal of looking for profits from forex trading, and that is the reason many forex traders enter the investment business. Are you also one who is also interested in this business? I think that’s the purpose of your visit to our site to know what is forex trading is.
How does forex trading works ? for those who are new to the world of forex, not many understand how forex reading works. Basically, forex trading is buying or selling one currency against its value to another. The purpose of forex trading is to seek profit from the difference in exchange rates traded. The forex market is the most liquid market in the world with an average daily trading volume of $5 trillion.
Here are the most commonly traded currencies and their abbreviations:
- AUD: Australia dollar
- USD: United States dollar
- GBP: United Kingdom pound
- EUR: Euro Zone euro
- JPY: Japan yen
- CHF: Switzerland franc
- CAD: Canada dollar
There are others, but those are the most widely traded currencies on the forex market. The forex market can be open 24 hours a day due to differences in working time and hours in each of the world’s financial centers. Here are 4 world forex trading sessions
- Australian Market (Sydney)
- Asian market (Tokyo), namely Japan, Hong Kong & Singapore
- European market, namely Germany and England (London)
- American market (New York)
What is forex trading and how does it works can you learn on this articles. Get a variety of other interesting information on our site. The conclusion is , forex trading is the exchange of currencies. The advantages of trading Forex is that it has high liquidity, low barrier to entry, better risk management, can trade anytime and it has low transaction costs. It’s traded by banks, corporations and retail traders like you and me.