Title: what is Forex trading ?
1Forex Trading
2What Is Foreign Exchange?
- Forex, also known as foreign exchange, FX or
currency trading, is a decentralized global
market where all the worlds currencies trade. - It is trading of currencies from different
countries against each other. - The FX market is the place where different
currencies are traded Capture Audience Attention - More than 90 of all currencies are traded
against the US Dollar (USD)
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3Benefits Of Forex Trading
- Time and place flexibility- As we know the market
is open 24 hours each day, so we don't have to
worry about the managing our own time. - Highly liquid market- The market is so huge, that
is extremely liquid. - Low transaction costs- The transaction costs are
determined by the bid spread, is usually less
than 0.1, and in case of large dealers it may be
even lower. - Margin Based Trading- Once you have funded a
margin account with you broker, you can engage in
any trading activity you wish is so long as you
have sufficient margin remaining in your account.
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4Different Ways To Trade Forex
- Spot Forex
- Spot trading most commonly refers to the spot
forex market, on which currencies are traded
electronically around the world.
Most spot currency trades settle two business
days after the execution of the trade, with the
exception of the U.S. dollar vs. the Canadian
dollar, which settles the next business day. - Futures
- Futures are contracts to buy or sell a certain
asset at a specified price on some future date.
it is a binding contract between the two parties,
which allows them to trade a certain amount of
currency pair at predetermined price in future
time.
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5Different Ways To Trade Forex
- Options
- An "option" is a financial instrument that gives
the buyer the right or the option, but not the
obligation, to buy or sell an asset at a
specified price on the option's expiration date.
if a trader "sold" an option, then he o she would
be obliged to buy or sell an asset at a specific
price at the expiration date. - . Exchange- traded Funds
- Exchange- traded funds or ETFs are an investment
fund which are traded on the stock exchanges like
shares . They are invested in a single currency
or basket of currencies . the investor who are
not more inclined towards futures or forex
markets uses currency ETF's.
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7THE FOREX SECRET
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