Everyone having money in their pockets are involved in currency trading. If you are a US resident and have US Dollars in your pocket, you became an investor because you are holding a nation’s currency. If you exchange currency or buy and sell currency then this transaction is a part of the Forex Trading. Currencies are traded in the Forex market. Forex Market is the larger than any other financial market of the world because more than a trillion US Dollars are traded in this market everyday.
Every Market in the world operates at some centralized location but Forex market. Forex market is a global market and there is no central location of this market and this makes it different from other markets. In the Forex market, there are global sellers and buyers and trades can be placed in this market from any part of the world. Forex is also only one market that operates 24 hours in a day and 5 days in a week. This means that this market does not close for a second from Monday to Friday and this makes it attractive for the traders and investors. Traders and Investors in the Forex market are more than any other market of the world and so every second you can find someone ready to buy or sell currencies in this market.
Earlier Forex market was accessible only to banks and large financial institutions but now with advancement in technology and high leverage options; anyone can reach this market and start trading. The major time zones and dealer centers are from Newyork, Sydney, Tokyo and London. Traders can buy the currency whose rates are going down and sell it when rates are going high and every time the rates of one or the other currency are going down so traders have opportunity to earn profit every time. Profit or loss is the result of fluctuations in the currencies.
Traders or investors must not ignore any news of events coming from any part of the world because such events can affect one or more currencies. To be a successful Forex trader, it is necessary for a trader to be aware of the major events occurring in any part of the world that may affect currencies.
It is the biggest market because traders have opportunities to earn maximum from minimum investment and this is the major reason why many investors and traders joined this market. High leverage options are provided. You may get leverage of 100-400 that means with your $100, you can open a position of $10,000 if you are getting leverage 100:1. This is the reason why the profit that traders can earn in this market is higher than any other market if the rate of bough currency goes higher. On the other hand, if rate of bought currency goes lower and your trade is without stop loss then all your investment is gone. So if profit is high then risk is also high.
To keep yourself on safe side, don’t forget to place stop loss so that your position can be liquidated easily without much loss if rates start falling down. Placing trades without stop loss is like jumping from a plane without a parachute. Fxstay team work with the traders and investors to make optimum use of their investment and minimize the risk involved. Fxstay team helps the beginners to become the experienced and successful traders and investors.
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