Forex Trading

To many, this might be a new term or to some it may be some term they just here of but never really get concerned about anyway. But such an oversight might be denying you an opportunity of a lifetime to create wealth. In the Forex market also known as the FOreign EXchange market or just FX, is where you make money too easily, but can also loose it as fast.

Simply put, the Forex market is a market where buying and selling of different currencies takes place. This process of selling and buying of currencies is what is referred to as Forex trading. In this market, two currencies are involved in every transaction. When one is buying a given currency, they will be in effect selling some other currency that they are currently possessing.

Say one has Kenyan shillings and they want to get the US dollars; they then will be selling the Kenyan shillings to the other party who has the US dollars, and in the process will be buying the US dollars. Put in very easy terms, that is all what Forex trading involves; the other is simply some little complication to bar the lazy mind from flooding the market and thus reduce competition, which then translates to more revenues for the market players.

In the Forex market, we have an international interconnection of computers where traders exchange information and conduct their transactions. The Forex market operates on a 24hour basis unlike the stock market which is open for a few hours per day. The other advantage of the Forex market is that it is a global market where you are assured of a sale or a buy whenever you want to transact.

Many market players in the Forex market love their game due to the high liquidity in the market. In the FX, you can get your money back very fast whenever you need it. It is estimated that on a daily basis about $4trillion dollars exchange hands in the FX. This is way too much money to be circulating in the global economy, without the input of a wise investor. That is why I’ve introduced this investment instrument into your portfolio for consideration and probably for venture.

In our next article on this FX series we will delve deeper into what FX trading involves in totality. Be my guest then…but for now, I just hope you are not in darkness with regard to what Forex trading is all about…

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