In the shadow of a layman, forex trading is the activity of exchanging money in Money Changer, trading and buying foreign currency manually done through money changer. In fact, forex trading is different from manual transactions like in Money Changer. Generally, the purpose of someone to buy and sell money in Money Changer is because of the need to exchange currency to transact in a country.
While forex trading done done online with the aim of getting profit. Need to be understood, forex trading is a business activity, investment, even can be a profession. Online Forex trading with the purpose of gaining such benefits is done by broker forex broking.
The principle of online forex trading is basically the same as buying and selling money in Money Changer. The advantage of forex trading can be obtained from the difference between the purchase price and the selling price. For example, we buy $ 100 US Dollars when the Rupiah exchange rate against the Dollar is worth Rp13,250. Rupiah that we spend to get $ 100 is to Rp1, 235,000.
A week later, the US Dollar grew stronger until the exchange rate became Rp13,300. A trader will sell $ 100 that he got with exchange rates this week. So he can profit Rp50,000, because the person who wants to buy his $ 100 must issue Rupiah as much as Rp1, 300,000.
Well, online forex trading business does it all not physically. They transact in cyberspace through a container called software or trading platform.
Forex Market
In contrast to traditional markets. Because here being traded is the currency, then the market (where traders / market participants make a sale) is called the forex market. Who are these forex market participants? Very diverse: can be multinational banks, big companies, countries, institutions, speculators, etc.
Given the global scope and culprit, this forex market becomes very attractive and profitable. Why? So global, the forex market is the biggest money market ($ 4 trillion / day), and very liquid (can sell and buy at any market price). The forex market is also open 24 hours non stop due to world time difference. So, we can trade anytime according to our free time.
In addition, the forex market does not have a specific physical location. This is where the trading platform functions mentioned above. The trading platform describes the condition of the forex market. The process of online forex trading transactions can occur quickly and in very large numbers as well.
Forex Trading Objectives
In simple terms, the purpose of forex trading is to gain profit from rising and falling currency exchange rates. Market conditions and prices in the forex market move very dynamically, can change at any time quickly respond to events whether it's economic, political, war, disaster, etc.
Especially for countries with advanced and strong economies like the US or Japan, there is little sensitive information, then the price of the currency can move up and down. This is what traders see as an opportunity and opportunity to trade.
Forex Trading Opportunities
The Internet has made a lot of revolutions in the world of commerce, including in the world of forex trading. With the internet, forex trading can now be done by anyone.
In the past, forex trading can only be done by Big Player (bank, state, institution) only. However, now everyone can trade. You and I can trade online forex easily and with a capital as small as 10 Dollars only.
Forex Risk
Forex is like a double-edged sword. With forex can make us quickly become rich, but the reverse with an instant can also erode our capital. No matter whether your forex is considered an investment or as a regular trade, a clear forex has a high risk. So understand the true risks in forex and do not get one step.
Important To Be Logged
The Forex market is the largest and most liquid market in the world. Forex trading can be done anytime, 24 hours a day. Monday to Friday. Starting from:
Australian Market (Sydney) at 05.00 - 14.00 WIB.
Then to the Asian market (Tokyo), namely Japan, Hong Kong & Singapore at 07.00 - 16.00 WIB.
Then to the European market of Germany and England (London) at 13:00 to 22:00 pm.
American Market (New York) at 20:00 to 05:00 (the next day).
With the latest developments (Internet), forex trading can be done online (anywhere) with the help of laptops and gadgets such as smart phones.
Forex can quickly make you rich or poor. Because of this great risk, you must be wise and properly understand the forex completely before you decide to plunge in it. If steady want to trade forex, then it's good practice first with a demo account. Demo accounts are accounts in forex brokers that allow you to trade with virtual funds (not real money), but the exchange rate graph (price) remains in line with actual market conditions.
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