Our article today takes us through forex trading and the need to know what Forex is, so let's see what this is about.
What is forex?
To be able to talk about forex trading it is important to be clear What is Forex, well, forex is exactly the world market to execute currency trading, we can describe it as the oldest and most liquid market that has existed, because here we have the ability to that all financial agents around the world, call banks, investment fund managers, retail investors, financial institutions, etc., making forex trading can be done in a comfortable enough way.
It is good to keep in mind that forex trading is presented as one of the exchange rates of certain currencies compared to others, because the price of a certain currency faces a different one, in such a way that it can be quoted in pairs, then We show some examples of this, starting with the best known comparison and that of the dollar against the euro.
- EUR / USD (euro against United States dollar).
- UDS / JPY (United States dollar against Japanese yen).
- EUR / GBP (euro against British pound sterling).
- GBP / USD (British pound against United States dollar).
- AUD / USD (Australian dollar against United States dollar).
- EUR / JPY (euro against Japanese yen).
- USD / CAD (United States dollar against Canadian dollar).
- NZD / USD (New Zealand dollar against United States dollar).
It is good to know What is Forex, because this is a currency market where we have the possibility of executing investments 24 hours a day, it is available from Sunday to Friday and this is very simple, because to do forex trading we just need to open an account with Forex broker, for what we need, a computer, tablet or mobile phone and internet connection, with this we only seek to have the forex trading platform that simply provides us with a broker, and in this way we can start investing in the currency market
What are Forex brokers?
To make forex trading it is important to use the brokers, and these are only intermediary companies, whose sole purpose is to execute foreign exchange purchase and sale operations that we have requested, she asks us for a “spread” commission, but that does not It is bad, since these commissions tend to be very low, for the purpose they meet, as they offer us the possibility of investing small amounts of money with the possibility of getting a larger amount, since the amount invested is lent as collateral and The intermediary in this case forex allows us to open a larger operation. Then we leave an example:
With a leverage of 1:30 it will only be necessary to contribute 50 euros, so that you can get a benefit to operate in the market with 1,500 euros, this means that the volume of our operation is multiplied by 30.
How to select the best Forex broker?
It is important to take into account certain aspects when choosing the broker, because our goal should be to use the best one, therefore knowing that it is Forex tends to be of vital importance.
Review the reliability and safety values.
Choose a broker that is regulated by official bodies, some examples of them may be British FCA, Spanish CNMV, so to mention 2 examples.
Review the conditions and negotiation that these platforms offer. There are very good mobile platforms like MetaTrader 4. We hope that our article will be useful and you can use forex trading, knowing exactly what is Forex ?. Luck.
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