WHAT IS FOREX ?

INTRODUCTION OF FOREX

Forex, FX, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. Offers leading online trading platforms for individuals that wish to speculate on the exchange rate between two currencies. In doing so, speculators purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the speculator as a result of events that takes place across the globe. This market of exchange has more daily volume - both buyers and sellers - than any other market in the world. The FX market is available 24-hours a day, five days a week. Furthermore, the Forex Market is the largest financial market in the world with daily reported volume of over $1.4 trillion changing hands between buyers and sellers across the globe, making it one of the most exciting markets for trading. Although currency trading is inherently governmental (central banks) and institutional (commercial and investment banks), technological innovations, like the internet, have made it easy for individuals to take part in the currency trading markets and to trade via intermediaries online.

The Forex market has quickly become the world's largest financial market, with an estimate daily turnover of $3.2 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example, traders in the forex market don't need to wait for a bell to ring, but can make trading decisions around the clock.

Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really revolutionized the industry, making the retail section of the market more dominant than ever.


WHY FOREX ?

* $3 trillion daily turnover
* $35 million traded every second
* 40 x the size of NASDAQ
Foreign Exchange Currency Trading (Forex) is the exchange of money between different countries. The value of one country’s currency is constantly changing against the value of another country’s currency. Forex traders make money through buying and selling currencies on the foreign exchange market.

Online Forex trading is a nonstop cash market. It is one of the fastest growing industries on the internet. It attracts a wide range of individuals, from beginners to more experienced traders. Anyone with access to the internet, a valid credit card and with a minimum cash deposit can share in the excitement.

How it works

Foreign exchange is an exciting market. Individual traders trade on margin. For example, a stake of just $100 gives a trader access to a deal worth $10,000 (using a leverage of 1: 100). Markets fluctuate constantly and for a margin trader every little move is magnified 100 times. And while potential profit is unlimited, the trader can only lose their initial investment – for this example, $100.

For example:

Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 1,000 deposit can command positions of up to USD 100,000 through leverage. If you believe that the euro will strengthen against the dollar you'll want to buy euro now and sell it back later at a higher price.

* You want to buy the euro - We quote EUR/USD at 1.2501 (bid) 1.2505 (ask), which means that you can buy 1 euro for 1.2505 USD. In this example you buy EUR 100,000, at the quote price of 1.2505 USD per euro.
* The market moves in your favor - EUR/USD is now quoted at Bid 1.2515 Ask 1.2519
* Now you sell your euro and get the profit - You sell euro at a price of 1.2515
* The profit is calculated as follows - Sell price-buy price x size of trade
(1.2515 minus 1.2505) multiplied by EUR 100,000 = USD 100 Profit

The Attraction of Forex Currency Trading
Foreign exchange currency trading is a regulated market. It operates under the strict rules of the world's financial authorities and the biggest financial institutions on the planet.

The main incentive of currency dealing to private investors and the attractions of short-term Forex trading are: 24-hour trading, 5 days a week, with nonstop access to global Forex dealers.

Based on That wide opportunity of Forex, here by, we review 3 biggest online forex that where known with their professional action. Forex Yard, Etoro and Easy Forex, so You can make comparison and decide one best that suit for You.