Being new to FOREX trading? To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPY…you get ’short’ in a currency every time to buy another and the profit is made when you buy-low and sell-high.
FOREX market is the largest trading market in the world. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. Although FOREX trading involves such a big volume of trades nowadays, it is not made available for the publics until year 1998. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market’s extraordinary liquidity and strong trending nature of world’s main currency exchange rates. As a fact in FOREX trading, FOREX is mainly traded in large international bank. To start trading on FOREX, one must first learn how to read FOREX quotes. It means the value USD had been increased when USD/JPY quote goes up
The ‘bid’ price is the price at which you can sell the base currency; while the ‘ask’ price is where you can buy the base currency. You don’t need much tools to trade in FOREX market. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.
To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. FOREX traders who study charts predict the market future by evaluating past market performance. A huge variety of FOREX charts are available in the market. Trading in FOREX is not as simple as it seen from outside. I wish you good luck and good profit making in your FOREX trades.