Pages

Saturday 13 August 2011

Introduction to Forex Trading:

This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world. There are many markets: markets fo stokes, futures options and currencies.There are probably the most accessible markets for traders like you and I.People easily understand the basics of trading shares, so I will occasionally use examples from that market.The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.The forex market has much higher liquiditym then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planets and as a result it means 24 hour trading.