Beginner’s Guide to Forex Trading
Even the smartest people on the plant are intimidated by the term trading – and for people who believe that the Forex market or the trading market is a scary pool, the sharks are definitely going to eat them up. That said, it is not a dangerous or an intimidating task either. Just like any other form of investment or investment type in the market, the Forex market also follows the same type.
In short, it is considered as an investment market, where everything can go right, or everything can go wrong. With a simple amount of patience and practice, for most of them, it is believed to work miracles. If you’re a beginner reading this article, dig in, because we’ve got some news for you!
This type of market is called the Foreign Exchange, Forex, FX or the currency exchange market. It is also considered a global investment market, with annual turnovers and profits rising every year. This platform is utilized to exchange the currencies of different regions, on one single platform. The activities on this type of market take place on a daily basis, except on the weekends. According to studies, in 2010, the global currency market made a turnover of $4 trillion, and since then, it has only scaled up towards success and seen a massive rise of up to 20%.
Understanding the currency market
Like noted earlier, it is a 24-hour market place, that is shut over the weekend- from Friday evening to Sunday evening. However, it is intimidating of the beginners to understand these concepts. Hence, we have jotted it down in simple terms.
The market is divided into three – the European, Asian and the united states. These currencies generally trade the main currencies, and sometimes the value of each overlaps one another. The coins that regenerated are generally treated it from of micro-lots and mini lots.
Micro lots are the ones that comprise of 1000 different types of units, which are all of the base currency and the mini lots also comprise of 100,000 units that are even from the family of the base currency. The currency exchange from one company to another takes place in the form of pairs, and this cannot be changed – as this is the way the primary system of the foreign exchange world.
The currencies are also present in the form of decimal points. One suggestion we would provide to the beginners to start with the currencies that represent a 10-cent move in their price. Although this does not sound like a lot on paper, it still is enough for the beginners to maintain their losses in the beginning and also understand the market carefully. Experts of trading also declare that the higher chances of trading enhance itself when there is a fewer option available for trading between two currencies.