forex trading | Grundläggande introduktion till Forex

forex trading | Grundläggande introduktion till Forex. Forex is one of the world largest instruments of investment with total trading nearly 3.2 trillion USD daily. It is far exceed any stock exchanges of the world. Unlike stocks and futures exchange, Forex is certainly an interbank, over-the-counter (OTC) market which means there is no single universal exchange for exact currency pair. The foreign exchange market open 24 hours everyday throughout the week between banks with banks, individuals with Forex brokers, and lastly brokers with banks.

Again unlike stoke exchange, Forex commodity is a 2 way market which means you can make the profit by bull(buying)or bear(selling) the currency pairs by following the movement of the currency. The Forex’s profit potential comes from the changes in the currency exchange market. By knowing the trend of the currency movement with some extra skill and knowledge (fundamental and technical analysis) one can easily be able to make a huge profit from Forex.

Did you know what is leverage in Forex ? Leverage is one of Forex advantages. Basically it is the ratio of investment to actual value. Using $100 to entry trading contract with a $10,000 at a 1:100 ratio. The $100 is all you risk, but the profits you can gains may be many times greater than what you are expected.

The risk in Forex- Experts always say when you are in market make sure to use only 10 percent of your capital (equity).The trader also must be familiar with term ‘margin’.Margin mean you cannot lost more than your initial investment. Of course
your gains are unlimited but you will never lose more than your initial investment. So be advised to never risk more than you can afford to lose.