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Friday, 3-Feb-2012 07:41 Email | Share | | Bookmark
Forex Trades

Nowadays Forex is getting extremely popular and the number of its participants is constantly growing. Even a decade ago the main participants in this financial market were big financial institutions such as banks and multinational corporations. Governments also took part in Forex trades with the help of their central banks because they were interested in stabilization of the rates of their national currencies. However, in the modern world the situation in the Forex market has changed significantly and nowadays a great number of separate individuals also take part in forex trading platform because they find it to be quite profitable. As known, the Forex market was established in 1971 when the exchange rates of currencies became floating.

Nowadays the forex news trading is known to be not centralized like stock markets and currency markets. It is possible to conduct Forex trades from practically any location in the world. In this market its participants exchange currencies at the most favorable prices. In Forex trades investors purchase and sell currencies in pairs. There are five major currencies in this financial market and they are the US dollar, the Euro, the Japanese yen, the Swiss Frank, and the British pound. Another peculiarity of Forex trading is connected to the fact that this market is open round clock. It opens in Australia and then it moves to Asia, Europe and America. In general, there are three reasons which explain why people are so interested in participating in Forex trading. The first one is connected to the fact that in Forex market it is possible to facilitate a transaction. This is the reason why international corporations might be interested in Forex.

In this financial market it is possible to covert profits from one currency into another. The second reason deals with the fact that there it is possible to hedge against risks of price movements. Thus, money managers enter this financial market. The third reason is the most popular one and it tells us that in Forex trades it is possible to receive some good profits and this is a very attractive option for many individuals as well as companies and other financial institutions. More than 95 percent of all bargains which are concluded in the Forex market are of speculative nature which means that participants of Forex trading in fact sell nothing and purchase nothing. Their main goal is receiving profit.

A lot of people are sure that it is very easy to take part in trading. In fact, it is. However, if you do not know the basic facts about Forex your chances to receive some good profit in this field are almost zero. Thus, before starting trading it is recommended to get some theoretical knowledge about this financial market. Then it is necessary to practice a bit. The best way to gain some experience is to open demo account which does not require you to put money there. Thus, traders who use demo accounts do not run into risk of losing their money. But at the same time they can find out how trading in Forex occurs and try their strategies without any losses.

Need more information? Visit our blog and read Forex Seminar.

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