Interpreting the Functions of the Currency Trading Market
Many people are curious about the currency market and currency trading. It's basically similar in some ways as to most stock market exchanges in that things are bought and sold and prices appreciate and depreciate.
The one extensive antithesis is that you're trading in money instead of stocks or companies. It's called the Foreign Currency Exchange Market which most investors call for short the Forex market.
You'll find plenty of sales information about the Forex market online, but it's best if you learn a few of the rudiments before you even think about investing in the currency trading market.
One thing to be cognizant of, which is different from most trading market, is the Forex market is the absolute largest market in the world. It covers all nations and all nations currencies so you'll not only see those you are accustomed with such as the USD or the Canadian dollar and Japanese Yen, but you'll also see the Korean currency and small countries such as Zimbabwe.
Then it's different from normal stock markets in that the currency trading market is open 24 hours a day. Stock markets are opened and closed within the business day that the market resides in. The currency market is open 24 hours because someone somewhere in the world is awake and trading currency. There is a short period of time that the market closes on the world weekend, meaning that it's not as long as a weekend but it does close.
The other big difference is that you are not trading just one currency like you are a stock in the stock market. You're actually trading the currencies in pairs. This means that you are betting that one currency will rise or fall against another
Case in point, if you purchase the currency pair USD/JPY, and if the American Dollar rises against the Japanese Yen, then you have made money, but if you sold the pair, and the same thing happened you would lose money. Now if you sold the pair and the Yen climbed then you would make money.
You are probably quite befuddled by now, as to how you really do make money trading money. You are not alone, people spend years developing strategies and studying this market. In fact, most people lose their investment at least once as they learn about the unpredictability of the currency trading market.
Now, it's a bit easier to learn about the currency trading market. You can learn with a demo account that will be loaded up with play money so you can learn with real time trading. This way you can understand the software involved and also learn about strategy and of course, how volatile this market really is. - 23212
The one extensive antithesis is that you're trading in money instead of stocks or companies. It's called the Foreign Currency Exchange Market which most investors call for short the Forex market.
You'll find plenty of sales information about the Forex market online, but it's best if you learn a few of the rudiments before you even think about investing in the currency trading market.
One thing to be cognizant of, which is different from most trading market, is the Forex market is the absolute largest market in the world. It covers all nations and all nations currencies so you'll not only see those you are accustomed with such as the USD or the Canadian dollar and Japanese Yen, but you'll also see the Korean currency and small countries such as Zimbabwe.
Then it's different from normal stock markets in that the currency trading market is open 24 hours a day. Stock markets are opened and closed within the business day that the market resides in. The currency market is open 24 hours because someone somewhere in the world is awake and trading currency. There is a short period of time that the market closes on the world weekend, meaning that it's not as long as a weekend but it does close.
The other big difference is that you are not trading just one currency like you are a stock in the stock market. You're actually trading the currencies in pairs. This means that you are betting that one currency will rise or fall against another
Case in point, if you purchase the currency pair USD/JPY, and if the American Dollar rises against the Japanese Yen, then you have made money, but if you sold the pair, and the same thing happened you would lose money. Now if you sold the pair and the Yen climbed then you would make money.
You are probably quite befuddled by now, as to how you really do make money trading money. You are not alone, people spend years developing strategies and studying this market. In fact, most people lose their investment at least once as they learn about the unpredictability of the currency trading market.
Now, it's a bit easier to learn about the currency trading market. You can learn with a demo account that will be loaded up with play money so you can learn with real time trading. This way you can understand the software involved and also learn about strategy and of course, how volatile this market really is. - 23212
About the Author:
About the author: Zadoc Robinson has been online forex trading for 7 years. Visit his site for free tips on how to make easy money in currency forex online trading.
posted by X - Men @ 4:48 AM
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