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    Current page location: Home > Answers > What is foreign exchange market and how to invest?
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    Mary Chang
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    What is foreign exchange market and how to invest?

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    • Time:2018-10-25 10:46:40
    What is foreign exchange market and how to invest?
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    Xu Guo
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    Forex market is basically trading of currency pairs. Here you buy or sell a currency pair on leverage and sell/buy it making profit or loss. Since the currency fluctuations are very low on daily basis, so profit or loss margins will be very low, so there is a concept of leverage. Briefly, it multiplies the profit or loss, usually leverage is 1:50 to even 1:200. This trading market is much much bigger than any market, everyday 3-5 trillion USD of volume is traded. Forex market platform allows you to trade among various currency pairs. Mainly fully convertible and reserve currencies like USD, Canadian Dollar,Great British Pound, Swiss Frank, Australian Dollar, Euro and Yen are traded.

    First try to understand the basics of forex marketing. You must have seen so many ads of forex marketing platforms, most of them are fraud. Spread sheet betting type trading is illegal in many countries like India but legal in UK, beware  of such platforms. They don't put your money into forex market. There is a lot of fraud in forex maket, you can google about it. Look for some good platforms like capitalvia, investopedia etc.

    First understand the terminologies like pips, leverage etc and develop and get used to some trading practice(s) you feel good at by opening virtual trading account on some platform. My advice, avoid playing on very high leverage initially, control your greed for 'some more' and finally one who plays skillfully with calculated risk and moves steadily always remain in profit.
    To the best of my advice, never make it as primary source of income.

    #1Floor 2018-10-25 15:57:43 Reply(0)
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