Traders in the Forex market buying one currency at the
same time as they selling another, using a Forex broker to
make the trade. This paired form of trading means you might
be selling US Dollars (USD) at the same time as you are
buying GB Pounds (GBP). The trading of currencies is a
barometer of current confidence in a country and its
economic prospects. The strength of one currency is a
demonstration of its position against other competing
Newcomers to Forex might want to know where the hub of the
market is situated:
the answer is – it has no physical location. The Trading in
the Forex market operates electronically through the Interbank network.
Unlike other markets, there are no
opening or closing prices on Forex, as the market runs 24
hours a day, from Sundays to Fridays.
It is now easy for any individual to
start trading in Forex as the high entry thresholds, which
served to restrict Forex trading to financial institutions,
no longer apply. No longer do you need to have millions of
dollars to enter this market, so individuals can start
trading online from their homes.
Unlike traditional stock markets, there
are no commissions payable to brokers: they receive a
bid-ask payment instead. The bid-ask spread value varies:
usually 0.1 per cent of much lower depending on the dealer
and the lot or contract size.
Why is Forex trading becoming more
popular with private investors?
Here are some of the attractions of
getting involved in Forex trading:
You pay no commissions, clearing fees,
exchange fees, government fees, or brokerage commission.
How you can get started in Forex trading from
All you actually need to get started is a
computer with a high-speed Internet connection. Most of the
reputable Forex trading sites have helpful step by step
instructions to help you, and you can even start out with
‘dummy’ trades where you do not even risk any of your own
The cost of trading in Forex
You can open an account with a deposit of
around $250 in your account - this is called your margin. To
get a true feel of the market, it would be better to
allocate around $1000 if you can afford it – remember you
should only deposit this money if you are ready to risk
How you can make money in Forex trading
The key is to buy low and sell high, of course – but easier
said than done. Any currency that is fluctuating is a
potential candidate for a trade, and you can profit well
from a change as low as one per cent in the value of a
How you can get started Have a look at any of the major
Forex websites on a Business Opportunity Review website
where you can check how they are rated, deposit your initial
margin and you are ready to become an international Forex
Trader. Think of me when you make your first million.
by Adrienne Davis