What is Forex? Forex for beginners.
What is forex for beginners. From the data of the analytical survey three answers were chosen to the question «What is Forex?». The largest percentage of respondents said that in translation from English forex means currency exchange, and today this is the term for speculative trades on the currency exchange. On the second place such opinion: forex is a place where it is possible to earn the capital. And some answered that forex is a place where you can lose money.
We will analyze how right or wrong those or other respondents are, and what is actually this notorious Forex. Expressed in the official language, the term Forex (or the term forex) or, sometimes, FX came from the English Foreign Exchange, which literally translates foreign exchange, and means the interbank currency exchange at prices set during the trading session. Such a stock exchange is more correct to call the Forex market — the Forex market. In the West, Forex is both currency trading and the foreign exchange market.
What is forex — currency exchange «forex» means the concept of currency margin trading in the aspect of exchange trading, that is, currency transactions on the exchange with the purpose of profit and investment of free capital. Thus, those who call Forex the place of speculative currency exchange, are closest to the truth.
Therefore, the Forex market is a place where you can earn money. So the second part of the respondents also correctly formulated the answer. But with a reservation. Carefully read the word «earn». We are not just trying to focus your attention on work. Forex is work, it’s hard work of a trader. And like any work — requires a certain qualification. First of all, this is knowledge of the basics of technical analysis and the ability to apply this knowledge in practice to predict the movement of the market.
The notion of «technical analysis of price movement» and how it contributes to detailed forecasting of market behavior is devoted to a lot of materials on our site — Forex for beginners. An important role is played by a fundamental study of the state of the world financial markets. Getting theoretical knowledge is the first step to success in Forex. The next stage is a demo account, it is also called a virtual deposit. And, finally, the real deal
In fact, it happens this way: when people see an advertisement where dollars are coming from the sky on a gentleman sitting at a computer, they start thinking that I will knock on the keyboard and go to the Bahamas. Begin to knock and what? That’s right, Forex is a place where you can lose money. So we came to the answer of the third part of the respondents.
Who loses money? This can be told for a long time and in detail. But so far we will try to describe the situation in a few words.
Buying an advertisement that calls to join the ranks of Internet traders, individual individuals install a trading terminal and, after five minutes playing with virtual accounts, arrogantly decide to open a real deposit. Then, having received the first and probably not the last in its trading activity a significant loss, they fill up the ranks of scamming forex and with foam at the mouth proving that dealing centers are a «kitchen».
But a demo account is offered to a trader not only for acquaintance with the trading platform and the way of placing warrants for transactions. This is also an opportunity to refine your own strategies, check the profitability of trading robots, get acquainted with new financial instruments.
Separately, we should consider the risks of margin trading. Doing transactions using leverage does not only increase the potential profit, but also increases the probability of loss. In order to reduce the risk of losing the deposit, comprehend the basics of online trading, dealing centers offer to open a cent account. The cost of one point in the cente terminal is so small that you can start Internet trading with a tiny deposit.
Despite skepticism about Internet trading from a certain percentage of interest, a significant number of players in the Forex market is making progress. These are single-minded, constantly improving knowledge of their traders who have turned the remote trading on the stock exchange into the main type of their activity. How do they manage it, you will learn from our publications.