Basically, the Forex market is where banks, businesses, governments, investors and traders come to exchange and speculate on currencies. The Forex market is also referred to as the 'Fx market', 'Foreign exchange market' or 'Foreign currency market', and it is the largest and most liquid market in the world with an average daily turnover of $3.98 trillion.
The Fx market is open 24 hours a day, 5 days a week with the most important world trading centers being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.
It should be noted that there is no central marketplace for the Forex market; trading is instead said to be conducted 'over the counter'; it's not like stocks where there is a central marketplace with all orders processed like the NYSE.
The foreign exchange markets (FOREX) have evolved from the humblest of beginnings to the world's largest market by dollar volume. With several different entry points, speculators and hedgers can both find what they are looking for. Whether they simply want to hedge their everyday currency risk, or pursue a more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.
Forex trading as it relates to retail traders (like you and I) is the speculation on the price of one currency against another. For example, if you think the euro is going to rise against the U.S. dollar, you can buy the EURUSD currency pair low and then (hopefully) sell it at a higher price to make a profit. Of course, if you buy the euro against the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a losing position. So, it's important to be aware of the risk involved in trading Forex, and not only the reward.
Here's a quick list of skills you will need to reach your goals in the Forex market:
The Fx market is open 24 hours a day, 5 days a week with the most important world trading centers being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.
It should be noted that there is no central marketplace for the Forex market; trading is instead said to be conducted 'over the counter'; it's not like stocks where there is a central marketplace with all orders processed like the NYSE.
The foreign exchange markets (FOREX) have evolved from the humblest of beginnings to the world's largest market by dollar volume. With several different entry points, speculators and hedgers can both find what they are looking for. Whether they simply want to hedge their everyday currency risk, or pursue a more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.
Forex trading as it relates to retail traders (like you and I) is the speculation on the price of one currency against another. For example, if you think the euro is going to rise against the U.S. dollar, you can buy the EURUSD currency pair low and then (hopefully) sell it at a higher price to make a profit. Of course, if you buy the euro against the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a losing position. So, it's important to be aware of the risk involved in trading Forex, and not only the reward.
Here's a quick list of skills you will need to reach your goals in the Forex market:
- Ability - to take a loss without becoming emotional
- Confidence - to believe in yourself and your trading strategy, and to have no fear
- Dedication - to becoming the best Forex trader you can be
- Discipline - to remain calm and unemotional in a realm of constant temptation (the market)
- Flexibility - to trade changing market conditions successfully
- Focus - to stay concentrated on your trading plan and to not stray off course
- Logic - to look at the market from an objective and straight forward perspective
- Organization - to forge and reinforce positive trading habits
- Patience - to wait for only the highest-probability trading strategies according to your plan
- Realism - to not think you are going to get rich quick and understand the reality of the market and trading
- Savvy - to take advantage of your trading edge when it arises and be aware of what is happening in the market at all times
- Self-control - to not over-trade and over-leverage your trading account
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