What is Forex ?
·
Foreign
Exchange (FOREX) is the arena where a nation's currency is exchanged for that
of another. The foreign exchange market is the largest financial market in the
world, with the equivalent of over $1.9 trillion changing hands daily; more
than three times the aggregate amount of the US Equity and Treasury markets
combined. Unlike other financial markets, the Forex market has no physical
location and no central exchange (off-exchange). It operates through a global
network of banks, corporations and individuals trading one currency for
another. The lack of a physical exchange enables the Forex market to operate on
a 24-hour basis, spanning from one zone to another in all the major financial
centers.
·
Traditionally,
retail investors' only means of gaining access to the foreign exchange market
was through banks that transacted large amounts of currencies for commercial
and investment purposes. Trading volume has increased rapidly over time,
especially after exchange rates were allowed to float freely in 1971. Today,
importers and exporters, international portfolio managers, multinational
corporations, speculators, day traders, long-term holders and hedge funds all
use the FOREX market to pay for goods and services, transact in financial
assets or to reduce the risk of currency movements by hedging their exposure in
other markets.
·
MG
Financial, now operating in over 100 countries, serves all manner of clients,
comprising speculators and strategic traders. Whether it’s day-traders looking
for short-term gains, or fund managers wanting to hedge their non-US assets,
MG's DealStation™ allows them to participate in FOREX trading by providing a
combination of live quotes, Real-Time charts, and news and analysis that
attracts traders with an orientation towards fundamental and/or technical
analysis.
How can I start trading
Forex?
·
You'll
need to register a trading account with a Forex broker, such as Marketiva. Then
you can begin using their Forex client program to buy and sell currencies. This
will take less than 5 minutes of your time!
Who owns Forex and where is
it located?
·
It's
not owned by anyone in particular. Forex is an Interbank market, meaning that
it's transactions are conducted only between two participants - seller and the
buyer. So as long as existing banking system will exist, Forex will be here.
It's not connected to any specific country or government organization.
What the working hours of
Forex market?
·
Forex
market is open from 22:00 GMT Sunday (opening of Australia trading session)
till 22:00 GMT Friday (closing of USA trading session).
What are the
"long" and "short" positions?
·
Long
position is a "buy" position, meaning that this position will be in
profit if price goes up.
·
Short
position is a "sell" position, meaning that this position will be in
profit if price goes down.
What is the best Forex
trading strategy?
·
There
is none. You should constantly develop your own strategies for every possible
market situation, if you want to be in profit. Specific strategies can only be
good for a certain period of time and for certain currency pairs.
How much money I need to start
trading Forex?
·
With
Marketiva you can start trading Forex with as little as $1. Usually, the
minimum amount varies from $100 to $10,000 ($100,000 and more for Interbank
trading).
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