Posts Subscribe to CommentsComments

Thursday, April 16, 2009

Browse > Home / / Basics of Forex

Basics of Forex

5 comments 4:46 AM Posted by Jim
Labels:
Day by day the popularity of forex trading is increasing. Many of us heard about forex or some have been scared hearing that Dollar is falling sharply against the Euro. Every one knows it is scary to have cheaper dollar but most of the commoners don’t know, what it really signifies. I am trying to give a basic view of the forex trading, hope it can be helpful for every one.

The foreign currency exchange market is called forex in short. The forex market is the largest market in the universe much bigger than the stock market. The forex always provide you the chance to use your total money and also provide very high liquidity.

The forex market is open throughout the day and night. Forex transactions are performed always based on the margin. Using a little amount of money you can purchase a huge amount in forex trading. This way the return is always a huge when the market moves upwards. But there is a huge risk also involved in this trade, when the market moves downwards the loss you have to face is also going to be huge.

Forex transaction is always performed in pair as you have to buy a currency at the expense of another. Some major currency pairs are available at market like USD/GBP, USD/CHF. Unlike the stock market you don’t have to pay for every transaction. You have to pay spread which is determined by the trading company you are dealing with. When you sense that JPY/USD is going up and some good economic news is waiting for the US market, then you better opt to sell JPY/USD and buy USD/JPY as the Dollar will going to be stronger in future. Check in the next post for the rest part...

Comments

5 comments to "Basics of Forex"

editor said...
April 20, 2009 at 9:27 AM

Hello, I came through blogcatalog, from your discussion.

Great blog.

Here is mine
http://traffic-payout.blogspot.com
Traffic To Your Blog

R V said...
April 20, 2009 at 11:02 AM

Truly the basics of forex cannot be explained in a more simpler way than this.

Nick said...
April 20, 2009 at 12:12 PM

very good info

Chris parker said...
April 21, 2009 at 6:29 AM

Great blog on forex and usefull articals

forexwatch said...
April 23, 2009 at 7:26 AM

Very Well Explained.
Please visit & Comment mine:
http://myforexwatch.com

Post a Comment

Subscribe to: Post Comments (Atom)
 

Copyright 2009 All Rights Reserved Personal Finance Budgeting