Forex currency trading: The Forex market includes both companies and common people and they trade in the Forex market seeking different objectives:
-Banks: Some banks trade at a large scale, currency is traded in the billions of currency notes, daily. This trade is done either using customer funds or their own.
– Companies: Usually, companies need to use the foreign exchange market to pay for transactions involving the buying and selling of goods and services. Basically, companies are looking to exchange currency to make transactions in other countries. This is an important part of the daily movement of currency in the Forex market which is coming from companies that are making business transactions.
– Governments / central banks: They use the Forex market as a tool to increase or decrease the value of their own currency. They do this to try to control the money supply, inflation and interest rates by using their foreign currency reserves in the Forex market.
– Hedge funds: What they do is change the value of a currency by selling or buying huge quantities of currency, this is called speculation. They use the Forex currency trading market to reduce the costs of these transactions.
– Individuals: People who travel around the world and need to exchange currency at a constant basis.
– Investors: Investments companies that are managing portfolios for their clients use the Forex currency trading market to make transactions in foreign currencies in order to make a profit.
-Retail Forex traders: Every person who has an interest in the trading industry is allowed to use Forex, that’s why it is a continuously growing market. Retail Forex currency traders access the market either through a broker or a bank.
There are some advantages of trading in Forex currency market:
-Liquidity, Forex market is the largest market in the world.
-Forex market operates 24 hours a day, 5 days a week. It operates from 5pm EST on Sunday until 4pm EST Friday.
-It is easy to access; all that you need is an internet connection, a laptop or another internet access device to trade anywhere in the world.
The Forex currency trading market is a great market to trade in; however, it is necessary to remember the risks involved in trading, sometimes you win and sometimes you lose, that’s why the suggestion is to start trading with risky capital (capital you can risk to lose).