What is forex?
FOREX – is Foreign exchange market, where banks, businesses, governments, investors and traders come to exchange and speculate on currencies, but also on commodities/indexes/ stocks.
The Forex market is the space in which the currencies are exchanged. There are many currencies in the world, and whenever you try to exchange your currency for another one for different purposes, you automatically deal with the Forex market. However, one can also try to make profits by speculating on the price movements. It is the same like trying to profit from the real estate market by purchasing a house and selling it for a higher price sometime in the future. So, the Forex market is about the currency pairs like EUR/USD, USD/JPY, EUR/GBP, and more. The daily trading turnover exceeds 5 trillion, which makes the foreign exchange market the largest one.
The totality of operations made with the currencies forms the foreign exchange market, or briefly called Forex.
The market was founded in 1976, when all the nations of the world rejected the “gold standard” and went over to the Jamaican system, which implies the free exchange of currencies. Forex has become a must for the proper functioning of the world economy and the flow of capital between countries.
The specific thing about the Forex market is that it is not controlled by any government or structure, so it is not monopolized. Also, it is the biggest market in the world, with a daily turnover of over 5 trillion US dollars.
Forex is also used to express the currency pair trading process. With the help of the Internet, the traders have the chance to trade on special platforms or terminals and deal with brokers. This allows market participants to trade Forex from anywhere on Earth.
How do forex work?
Forex trading is about generating profits from the currency pair’s price movements.
In practice it is about opening positions on a platform. There are two types of positions:
BUY (long position)- when you expect a growth of the exchange rate;
SELL (short position)- when you expect a drop in the exchange rate.
If your expectations are becoming real, then you get a profit based on number of pips.
What is a pip?
The last figure in the quotations. The quotation always fluctuations, which means the price moves up and down. You should profit from these movements.
When the quotation goes up, it forms an uptrend:
If you expect such a trend, you have to BUY, and when you expect the price to go down, you have to SELL.
How to get started?
You have to deal with a Forex broker online. Choosing a good broker is very important, since there are many scams.
All you have to do is this:
- Register with us
- Open a live account
- Make a deposit and choose a leverage
- Download the platform or open the Web-Based platform
- Choose a currency pair and trade it on the platform by clicking BUY or SELL.
It’s time for you to invest!
We give you access to a broad range of commodities:
- Trade the metals complex with contracts on Gold, Silver, Copper, or Platinum.
- Trade agricultural commodities such as Corn, Wheat, and Coffee.
- Trade the energy complex with Crude Oil and Natural Gas contracts.
All of our commodities offerings come with low commission and fee trading, saving you money when compared with traditional commodity brokers.
Indices are collections of the largest and most widely traded stocks. Some common indices you may be familiar with include the S&P 500, the Japanese Nikkei, or the U.K. FTSE 100. Trading indices with LTD Accipiter gives you the opportunity to gain exposure to all the equity markets of the world and learn how to take advantages of possible profit opportunities where they occur.
Other benefits of trading equity indices through LTD Accipiter include our tight spreads, low commissions and fees.