As a great learning resource, To learn forex trading we have provided the list of frequently asked questions by beginners during the learning period. To learn forex trading you should read and understand all the questions and answers below.
What is Forex ?
Shortform for FOReign EXchange and is the worldwide currency inter-bank market that uses a floating exchange rate system. It is the world's largest financial market with an estimated daily average of more than 1.5 trillion USD.
How objective is Forex market ?
The Forex market is so large and is composed of so many participants that no one player, not even a large government, can control or even influence the direction of the market.
Where is Forex market located ?
There is NO central location where trading takes place. It usually takes online. Anyone with an account can access the market no matter where he/she is located. Forex trading occurs between a few hundred large banks that process transactions for large companies and governments. These institutions continually provide exchange rates for each other and the broader market. The most recent quotation from one of these banks is considered the market's current pricing for that currency.
When does Forex trading occur ?
TFirst session starts in Tokyo, begins each week on Monday morning in the Asia-Pacific region which is Sunday evening in the America. Trading continues non-stop moving to the London nd later to the New York and in this way continues until markets closed on Friday evening.
What are the primary traded currencies ?
For most online brokers, primarily traded currencies are the ones that offer almost immediate liquidity:
1. Euro / US Dollar
2. US Dollar / Japanese Yen
3. British Pound / US Dollar
4. US Dollar/ Swiss Franc
How often does someone has to trade ?
There is no requirements or restrictions on trading frequency. You can trade whenever you want as long as forex trading markets are open.
How much money does it take to open a real money trading account?
Nowadays you can register account for free. Free accounts are usually called trial/demo account. These account is the best way to learn forex trading. I would suggest you visiting page which explains different forex accounts beforehand.
Why is Forex popular ?
Forex is popular mainly due to its potential. It offers great opportunities to earn money for experience sellers. People who learn forex trading for remarkable period of time can usually make good profits in the forex markets