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FOREX for beginners

 

Beginners of the Forex currency market should very carefully study all the main features and principles on which this market operates.

In Forex, traders can perform actions to sell and buy two specific currencies (usually Euro-Dollar). No commission is charged for such operations, the broker is compensated based on the difference between the selling rate and the buying rate, which is known as the "spread".

This article provides some instructions on how to start trading with Swissquote Bank, which will later become the user's guide to the world's most liquid and largest market.

FOREX: in brief

Forex is the largest market in the world, the largest turnover of foreign exchange transactions in the world is made on it, and its daily turnover is about $ 4 trillion. With the simultaneous purchase or sale of two different currencies, currency pairs are formed in relation to which the Forex market is traded. According to the supply or demand, exchange rates of currencies are created for each currency, which are influenced by completely different factors, ranging from the economic situation of a given country to the trading state of the market itself.

Transactions can be concluded in different ways - orally or using computer programs. Participants in such trades occupy different social and professional niches, but this does not prevent them from conducting active trade. These can be both individual individuals and entire corporations, funds, brokers, banks.

The Forex market has a number of advantages that have a positive effect on trading results. The market itself is open from Sunday to Friday around the clock. There are great opportunities in trading due to the provided leverage or margin, up to 100: 1, there is a high volatility of currencies, which creates favorable situations for obtaining profit. Trading is carried out on 63 currency pairs, including NDF.

What is the Forex (FX) market?

For traders whose activities are based on conducting speculative transactions at the rates of certain currency pairs, Swissquote Bank offers interactive foreign exchange trading.

These courses are influenced by international political and economic factors. The exchange rate also depends on the specifics of currencies, and other factors, such as adverse weather conditions (hurricanes), terrorist attacks, etc.

Forex is the largest world market, with a daily turnover of about 4 trillion. dollars, which makes it the most attractive and profitable among other global markets.

What is the forex market based on?

The foreign exchange market allows users to carry out two-way transactions with currency, as well as speculate on the difference in exchange rates.
The principle of transactions in the currency market is very simple: each process is similar to the processes of ordinary markets, so the transition to the implementation of currency trading activities is not a big problem for more traders.

Buy - Sell

If you intend to open a position, you must select an amount from the menu located on the platform, click on SELL / SELL (if you need to make a purchase, the actions are carried out in the reverse order).

Thus, you open a position, about which you will be notified to the trading console.
To close an open position, the order of the initial operation must be changed. For example, if you intend to buy back 100,000 EUR / USD.

For other orders, a special procedure for closing and opening positions on special conditions has also been developed.