What is Foreign Exchange?

posted in: Education, Forex Articles | 0

iStock_000015534900MediumHave you ever tried online forex trading? Being a trader of forex trading means we have the opportunity to benefit from the results of our trade. But please remember, the acquisition of a stable profit will not be achieved in a short time. Leverage means risk. Indeed one of the advantages of forex trading is the leverage that can improve the strength of our transaction as a trader. However, please be aware also that the higher the leverage, the higher the risk. That is why it is said that leverage is like a double-edged sword. On the one hand increases the strength of the transaction, but on the other hand also increases the risk. Demo accounts are the best companions. Many traders feel that trading on a demo account is useless or even prestige receipts demo account.

 

In fact, in my opinion, even a master class trader still require a demo account to test a trading system before it is applied in the real account. Although your capital abundant, however bear unnecessary risk is less intelligent action for an investor is not it? The fact is that many forex brokers are scam. So, be careful to choose a broker where we will trade. You will lose money in forex trading. Well, it looks really scary but it is the truth. You may not always get the profit from every position you take. So, prepare mentally to face the losses that you will experience.  Forex stands for Foreign Exchange, or the exchange of the value of different currencies, forex activities without consciously or unconsciously, often implemented by all people in the world, if you travel abroad you definitely exchange your currency with the currency of another country.

 

Or another example as a result of the export – import activities, the needs of the market as well as banking institutions, must conduct activities of currency exchange. If we trade by exploiting the difference between the purchase price and the exchange of the selling price fluctuating every minute, usually referred to by traders who like to trade forex through a trading house /brokers. You can go to trade online and via phone, or by manually though. You need to learn how to trade well to make money from online foreign exchange trading.