Instagram ForEx traders
Even those who had never heard anything about the world of finance could understand everything
By making this article, we have set ourselves the goal of helping you understand the Forex market in the shortest possible time. We also decided that we would not use abstruse terms and complex nuances, so that even those who had never heard anything about the world of finance could understand everything. So let's get started!
In the Forex market, as well as in an exchange office, you can exchange one currency for another. The exchanger earns on the difference between the selling and buying prices; in the Forex market, the role of exchangers is played by special companies - brokers.
Ordinary people, or traders, make money in the Forex market by guessing fluctuations in the exchange rate, which allows, if we take an analogy with an exchange, to buy a dollar cheaper today, and sell it more expensive tomorrow when the rate rises. Important point here is to avoid Forex scams Instagram is full of them!
The Forex market in its modern sense is more than 40 years old. Nevertheless, many people still have no idea what kind of economic system it is and how it works. But the Forex market is a real storehouse of opportunities, on which almost everyone can make money, because here, like when exchanging currencies in an exchanger, you do not need economic education and special skills. Below we will analyze in detail everything you need to start successful work in the Forex market.
Forex is a global currency market, a kind of exchange on a planetary scale. The word Forex (Forex) is derived from the phrase Foreign Exchange, which means "foreign exchange". To simplify as much as possible, then Forex is a system of foreign economic relations between banks of all countries and smaller players participating already through banks. The Forex market is constantly buying / selling currencies, securities, precious metals and other resources, which makes it an important part of the global economy.
Forex has neither a center as such, nor an official website. Because this is not an organization, but a collection of all organizations that, in one way or another, enter the international economic arena. These are banks, multinational corporations, holdings, large brokers, etc.
The main operations carried out in the Forex market are buying and selling currency or something that is backed by currency. The main type of trades in the Forex market is speculative trades - this is when you make an income on the difference in price between buying and selling.
Forex market geography
The Forex marketplace is the whole world. Forex is not limited in any way regionally, because residents of all countries are buying and selling something at any given time - currency, securities, metals, oil. And thanks to modern information technologies, anyone who has the Internet can participate in trading and make a profit today.
These are the largest foreign exchange markets on the planet. Wellington is the first to start trading during the day, Sydney connects to it two hours later, and Tokyo is another hour later. After Hong Kong and Singapore, the Europeans take over the baton - these are Zurich and Frankfurt am Main. And so on - all the way to Los Angeles. There is a break in trading only once a week - when American exchanges close on Saturday at 01:00 GMT, and New Zealand exchanges reopen at 21:00 on Sunday, because it is already Monday.
Forex market advantages
We have figured out in general terms what Forex is. Now let's take a closer look at why this market attracts hundreds of thousands of people around the world.
Forex works around the clock
This makes it possible to earn money on it in your free time. Many traders work in their main job, and in the Forex market they trade in the evenings. As we have said, while in one part of the world it is night and the markets are "sleeping", in the other hemisphere it is day and the markets are active. This means that a trader can trade at any moment, even in the middle of the night.
It is the most liquid market in the world.
Every day in the Forex market there are millions of transactions, each of which is backed by currency. There is always demand and there is always supply. Market turnover is measured in trillions of dollars.
Large leverage
Since Forex allows you to trade on a margin system, a trader can get colossal leverage. For example, 1: 1000. And the profit in case of success will be colossal, and he risks only the available capital. This means that by depositing $ 1,000, you will be able to conduct transactions worth a million.
The most developed investment system.
Forex offers a huge selection of systems for passive earnings: PAMM, LAMM, MAM, RAMM accounts, trust management, auto trading (copying transactions), etc. You can read more about investments and their types in this article - learn more from Instagram ForEx traders on this point.
The minimum entry threshold
The initial deposit can be $ 1-10, and some brokers do not require it at all. You don't need economic or special knowledge, you don't even need to trade on Forex personally, but only use the investment opportunities of the market.
Many solutions to diversify risks.
Allocation of capital, the use of portfolios instead of specific accounts, and trust management are just a few of the possibilities, thanks to which a trader can reduce the risk of unsuccessful trades to a minimum.