About Profitability...(P-1-2)

It doesn’t take a financial genius to figure out that the biggest attraction of any

market, or any financial venture for that matter, is the opportunity of profit. In the

Forex market, profitability is expressed in a number of ways. First of all, just to set the record straight, you don’t have to be a millionaire to trade Forex. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At eToro, you can start trading Forex with as little as $25!

Right about now you’re probably asking yourself: “What chance do I have of

profiting with such a low initial investment?” The Forex market doesn’t require

large initial investments because it allows you to use leveraged trading. Leveraged

trading lets you open positions for tens of thousands of dollars while investing

sums as small as $25. This means that Forex trading has the profit (and loss)

potential of tens and even hundreds of percent a day!

To be continued...please check back soon.

Part 1-1: Intro: Why Forex?

What does the Forex market have to offer you?

• Accessibility – It’s no wonder that the Forex market has the trading volume of 3 trillion a day ‐ all anyone needs to take part in the action is a computer with an internet connection.

• 24 Hour Market ‐ The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. No need to bite your fingernails waiting for the opening bell.

• Narrow Focus – Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no rooms for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.

• Liquidity ‐ The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world, which basically means that under normal market conditions you can buy and sell currency as you please. You can never be in a jam for currency to buy or stuck with currency that you can’t unload.

• The Market Can’t Be Cornered ‐ The colossal size of the Forex market also makes sure that no one can corner the market. Even banks don’t have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move.

A Guide to Forex (p-1)

Well... I already discussed about the definition of Forex and also mentioned its scope. Now, here I'll go further development of this concept. I would like to tell it a complete guide to forex. This guide to forex trading will be discussed in several parts... and today is I'm goning to introduce Part-1.
Please Follow the Next post.

What is Forex or Forex market?

The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of

* its trading volumes,
* the extreme liquidity of the market,
* its geographical dispersion,
* its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
* the variety of factors that affect exchange rates.
* the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
* the use of leverage