The humble beginnings of Forex!
The word trading is as old as mankind himself and is still present in nowadays world. Although it comes in different forms and processes, trading carries the same principle that it did thousands of years ago, which is the exchange of a particular good for another.
In the old days, trading was done by exchanging one good for another. One would trade a horse for a cow for example. This was referred to as the barter process and is believed to be the origins of trading itself.
Nowadays with advancement in technology, trading is done by the use of a piece of paper commonly referred to as money. The process is still the same and the exchange of goods is still processed in the same way with only difference the use of money as the prime medium.
Trading in the world we live in has taken a new proportion which involves more than the exchange of goods and services only. The century that we live in has seen the birth of currency traders. They are the one who buys/sells the currency of one country to that of another country.
The market which is being referred to is the Forex market. The biggest most traded market on the planet. With a colossal US$ 3.5 Trillion traded every single day, this value is more significant when compared to all the other financial markets put together.
Millions of dollars are traded by major corporations daily. These companies form part of the wholesale market and comprises of banks and big hedge funds. They have the power to move the market from one direction to the other due to the large volume and amount of money traded on every single position taken. Those moves usually results in currencies going up and down in any single day thus changing the quotes of each currency throughout the day. The change in quotes most likely relates to profit made or loss incurred.
Forex market seems very appealing compared to the stock and futures market mainly due to the fact that it is a 24-hour open market. Trading starts in Sydney, Australia on Monday, then Tokyo, Europe, London until it reaches New York City, which is the last market to open each day. Trading is opened nearly 7 days a week making it the most active market to date.
EUR/USD, GBP/USD, USD/CHF and USD/JPY are referred to as the major pairs as they are backed by strong political and economical back-grounds. These pairs are the most traded ones on the currency market. Next on the list are the YEN pairs namely GBP/JPY and EUR/JPY and the commodity pairs AUD/USD, NZD/USD and USD/CAD.
My experience with trading begun when I was still in university, I had no clue of the dynamics of the market at his stage. Basically I was quite confused to how this process, which is the buying and selling of currencies, actually worked. After some readings, it all made sense. What I found is that not only could money help acquire goods and services but it could also be used to buy or sell another currency in some other countries.
Forex traders take advantage of buying and selling currencies they believe will appreciate or depreciate respectively. If they know what they are doing most of the time those appreciation and depreciation will turn out into some nice profit. Good traders make a great living through the process of buying and selling on the market.
It is very easy in the actual world we live to get involved in currency trading.
Below is a rundown of what you will need to get started in forex:
- A decent computer
- Internet connection
- Money to trade
- Forex Broker
That's it, simple and sweet!
Education is something that you will need to consider and I strongly recommend that you do educate yourself before jumping in this amazing forex adventure. With 5 years of trading under my belt I still learn new things every single day. Be humble, disciplined and teachable, do not try to make millions in a matter of days. Have a plan and a solid goal setting as this will pave your way to success. - 23204
In the old days, trading was done by exchanging one good for another. One would trade a horse for a cow for example. This was referred to as the barter process and is believed to be the origins of trading itself.
Nowadays with advancement in technology, trading is done by the use of a piece of paper commonly referred to as money. The process is still the same and the exchange of goods is still processed in the same way with only difference the use of money as the prime medium.
Trading in the world we live in has taken a new proportion which involves more than the exchange of goods and services only. The century that we live in has seen the birth of currency traders. They are the one who buys/sells the currency of one country to that of another country.
The market which is being referred to is the Forex market. The biggest most traded market on the planet. With a colossal US$ 3.5 Trillion traded every single day, this value is more significant when compared to all the other financial markets put together.
Millions of dollars are traded by major corporations daily. These companies form part of the wholesale market and comprises of banks and big hedge funds. They have the power to move the market from one direction to the other due to the large volume and amount of money traded on every single position taken. Those moves usually results in currencies going up and down in any single day thus changing the quotes of each currency throughout the day. The change in quotes most likely relates to profit made or loss incurred.
Forex market seems very appealing compared to the stock and futures market mainly due to the fact that it is a 24-hour open market. Trading starts in Sydney, Australia on Monday, then Tokyo, Europe, London until it reaches New York City, which is the last market to open each day. Trading is opened nearly 7 days a week making it the most active market to date.
EUR/USD, GBP/USD, USD/CHF and USD/JPY are referred to as the major pairs as they are backed by strong political and economical back-grounds. These pairs are the most traded ones on the currency market. Next on the list are the YEN pairs namely GBP/JPY and EUR/JPY and the commodity pairs AUD/USD, NZD/USD and USD/CAD.
My experience with trading begun when I was still in university, I had no clue of the dynamics of the market at his stage. Basically I was quite confused to how this process, which is the buying and selling of currencies, actually worked. After some readings, it all made sense. What I found is that not only could money help acquire goods and services but it could also be used to buy or sell another currency in some other countries.
Forex traders take advantage of buying and selling currencies they believe will appreciate or depreciate respectively. If they know what they are doing most of the time those appreciation and depreciation will turn out into some nice profit. Good traders make a great living through the process of buying and selling on the market.
It is very easy in the actual world we live to get involved in currency trading.
Below is a rundown of what you will need to get started in forex:
- A decent computer
- Internet connection
- Money to trade
- Forex Broker
That's it, simple and sweet!
Education is something that you will need to consider and I strongly recommend that you do educate yourself before jumping in this amazing forex adventure. With 5 years of trading under my belt I still learn new things every single day. Be humble, disciplined and teachable, do not try to make millions in a matter of days. Have a plan and a solid goal setting as this will pave your way to success. - 23204
About the Author:
Looking for the best information on forex trading, then visit Forex Trading Domain.com for the best advice on Forex education.
posted by X - Men @ 2:15 AM
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