Nowadays everyone is talking about a new rewarding activity called Forex trading and the superb opportunity this activity represents for folk willing to brake free from the corporate world and start home working or any where else without losing their current way of life and even enhancing it. Most professional traders consider the best and most profitable of the capital markets is the Currency market. For a number of years Forex trading was the sole domain of heavyweight banks, big financial establishments and nations central banks; as an example the U.S. Fed Bank.
But these days, thanks to the Net the market has been opened to everybody willing to learn the best techniques in foreign exchange trading and with the aim of making substantial profits as the establishments mentioned above that yearly and solidly make rather high profits from trading in the Foreign Exchange market. You have many advantages when trading the currency exchange markets, for example; you don't have to be concerned about costs you could have to pay to your broker; there additionally are none of the common costs to which equity and futures traders are accustomed to pay always; no exchange or clearing charges, no NFA or SEC fees.
The currency market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro dollar and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these 5 currencies account for over 70% of North American trading. Naturally there are other tradable currencies; they include the Canadian, Australian and New Zealand Greenbacks. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies comprise the spine of the Foreign exchange market.
The concept of "Buying" in Foreign exchange refers to the purchase of a specific currency pair to open a trade and "Selling short" refers to the selling of a selected currency to open a trade, i.e, precisely the opposite. When you Purchase, you expect the price of the currency pair to increase with time, i.e, you buy inexpensive to sell high; which is easy to understand. In the case of Selling short, it looks a bit more difficult.
Here the way to make money is to initially sell a currency pair that you believe will shed value in a given period of time and then, once it occurred, you will buy it back at the new price but now you can sell it at the prior greater price the currency had when you opened the trade, so you earn the difference in costs. It may seem kind of tricky when you are starting, but when you are in front of your trading station it will look much simpler.
But these days, thanks to the Net the market has been opened to everybody willing to learn the best techniques in foreign exchange trading and with the aim of making substantial profits as the establishments mentioned above that yearly and solidly make rather high profits from trading in the Foreign Exchange market. You have many advantages when trading the currency exchange markets, for example; you don't have to be concerned about costs you could have to pay to your broker; there additionally are none of the common costs to which equity and futures traders are accustomed to pay always; no exchange or clearing charges, no NFA or SEC fees.
The currency market has five major currencies: US Dollar, Japanese Yen, British Pound, Euro dollar and the Swiss Franc. It is due to their great popularity in world's commerce transactions and its high activity that these 5 currencies account for over 70% of North American trading. Naturally there are other tradable currencies; they include the Canadian, Australian and New Zealand Greenbacks. These minor currencies account for 4% - 7% of the total market volume. Together, all this five majors and minors currencies comprise the spine of the Foreign exchange market.
The concept of "Buying" in Foreign exchange refers to the purchase of a specific currency pair to open a trade and "Selling short" refers to the selling of a selected currency to open a trade, i.e, precisely the opposite. When you Purchase, you expect the price of the currency pair to increase with time, i.e, you buy inexpensive to sell high; which is easy to understand. In the case of Selling short, it looks a bit more difficult.
Here the way to make money is to initially sell a currency pair that you believe will shed value in a given period of time and then, once it occurred, you will buy it back at the new price but now you can sell it at the prior greater price the currency had when you opened the trade, so you earn the difference in costs. It may seem kind of tricky when you are starting, but when you are in front of your trading station it will look much simpler.
About the Author:
Todd Watson trades in Forex, tests Binary Options and is always hunting for the next best Forex strategy.
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