Forex (Forex Exchange) is the market in which currencies are traded. The market is open 24 hours a day, five days a week and currencies are traded worldwide within the major financial centers of New York, Zurich, London, Singapore, Sydney, Paris, Frankfurt, Hong Kong and Tokyo.
Forex is used principally for speculation and profit although corporations and governments use it to convert profits and payments into other denominations. People who trade in the Forex market should be aware of a country´s economic and political situation, as they can influence the direction of its currency.
If you are beginner in Forex market, start seeking for the right education in Forex which leads you to get the best results, education is the first step to getting started in Forex. Make sure to choose the right person to teach you and guide you to the right path.
While you are learning how to trade, you can open demo’s accounts and tests to perform in platforms without risking any money. Get to know the market, make sure you understand the operations and identify all the related terms. Do not rush your training process; experienced traders need to fully understand how the markets operate.
For Forex Beginners it is important to keep records of your trades, even if you doing just a demo. You will have the possibility of consistently see changes even if you are winning or losing you will get to understand the reasons for either way. As a Forex beginner, keeping a daily record of actions will help you to evaluate these traders and duplicate the correct actions and eliminate the mistakes. Being organized will save you time and make you successful in trading and launch you into a great successful Forex trading career.
Most operations are in major word currencies; these account for over 85% of all currency transactions and are also the most popular within the market because they show constant motion. To trade with a currency has to be paired two with another, this because one of them will be your base currency and will be cited first –often the U.S dollar- and with a value of one.
The second currency is therefore the amount that a dollar can buy. Forex trading is usually quoted in terms of supply and demand. Basically it is a point at any time when the counterparty against the bank or market maker is willing to sell and where they are willing to buy.
The bid is the price at which you can sell the base currency at the same time as the purchase of the currency and the selling price is the quoted price to buy the base. As a Forex Beginner you have to manage this currency pairs and understand how they work in the market.
As a Forex Beginner, do not forget to always take the time to study, learn and practice, there are a lot of tools for you to understand trading in a proper manner, before you invest real money, we strongly advice you to obtain the appropriate learning resources to became a successful trader.