Forex Trading School

Forex Trading School – Fact #1

As you may know, there are many benefits and advantages for trading currencies on the Foreign Exchange, better known as Forex.

The Forex Exchange was established in 1971.  This market grew at a steady rate throughout the 1970’s, but during the 1980’s Forex exploded from trading $70 billion per day to more than $1.5 trillion each day.

There are many huge players in Forex, but since 1995 the Forex Market became accessible to the individual trader.  Each lot traded is worth approximately $100,000.  By using leverage, an individual trader is only required to have a $1000 investment in the trade.  This is a 100:1 leverage.  No other market offers this amount of leverage.

Forex Trading School – Fact #2

Forex is also an extremely liquid market.  Because it is so large, you can buy or sell in just a few seconds as your transactions are only a mouse click away.  Using forex software you can also preset an automatic close for your position.  This way you don’t need to sit and watch your position, just place the trade, set an exit point and go to do what you want.

Forex Trading School – Fact #3

Forex trades 24 hours a day, 5 days a week.  It only closes from Friday afternoon until Sunday evening.  This makes it possible to set your own trading hours.  If you trade part time and want to place your trade at 3am, log into your account and trade.  If you are a full time trader, the same applies.  No other market lets you pick the hours you trade.

Forex Trading School – Fact #4

There are no commissions charged on Forex, only a small transaction fee.  This is not possible in any other market, as brokers charge a commission on each trade in all other markets.

Because currencies are traded in pairs, so you are buying one currency and selling the other.  For example, if an investor believes the US dollar will gain against the euro, you would buy the US dollar and sell the euro.  It’s just that simple.

Forex Trading School – Fact #5

The potential for profit is good as there is always movement between currencies.  Even a small change can result in substantial profits because of the large amount of money involved in the transaction.

Forex Trading School – Fact #6

First and foremost, before just opening an account and blindly making some trades, you need proper training.  Study the market, learn the terms used in trading, set up a demo account with a currency broker.  Then, and only then, use real money to trade.