Forex Trading Basics in simple words
In this article, I will try to cover the information about forex trading. Forex stands for Foreign Exchange. Actually forex market is a huge market. It is difficult to cover that market within a few words. There is so many attraction and quick money people see in this market. The doors of this market is open for all of the people around the globe. Any single person can do forex trading, whether he has some kinda disability, aged or house wife.
The main thing in this factor is learning in the initial time and then proper analysis of market. What are the things that you need to do forex trading? The answer is simple a little bit knowledge, a computer/laptop or even a mobile phone with internet connection. A person can trade in forex market easily, but he will need to have a middle man. That middle man is a forex agent or forex broker. This is because a normal person can not open a trade in market without any affiliation. The broker is a person who opens the trade on behalf of trader behind the screen.
Brokers in Forex Trading
Why we need brokers? Because brokers are already in market. They give you leverage to buy $100,000 lot with smallest possible amount. Without broker, I don’t think that a normal person will be able to invest $100,000 in forex market. So, the broker is necessary for that purpose. There are so many brokers offers minimum amount of investment, that can be $1 in initial stage.
New traders who are trying to learn forex trading has an opportunity to trade without money. Now the question is how? The answer is, almost every broker allow demo forex trading accounts. In those trading accounts, traders can trade with virtual money. They can make money by trading, that will be their practices. It will not give them money, but it will give them experience. By using demo accounts, traders understand the market’s ups and downs. It helps them to learn the analysis of market.
Commodities in trading other than Forex Trading
Brokers not only offer foreign exchange, they also offer other commodities to trade with. For example, trader can trade in gold, silver, platinum, palladium, copper and other metals. They can also trade with crops like wheat, cotton, coffee, orange juice etc. Oil is another commodity to trade with. Here I am talking about forex (Foreign Exchange). Forex market has almost 200+ currency pairs. What are currency pairs? you can read here!
Please watch video about 7 basic forex rules!