Forex trading also known as Forex, Foreign exchange or FX is the exchange of one currency to another at agreed price on over the counter market. It won’t be wrong to say that Forex is the world’s most traded market with a huge turnover daily.
Forex trading is the act of buying one currency and selling another for the purpose of speculation. It is one of the best market worldwide where you can garner huge profits in one go, by making a wise decision. Here are few advantages.
- 24-Hour Forex Trading
The top most key element behind immense popularity of forex is that the market is opened 24 hours a day from Sunday evening to Friday’s night. According to trading pro, Barry Sendach, trading follows the clock and traders can take a position whenever they want, regardless of time. Thus this sector is best to earn huge amount.
Foreign Exchange is a leveraged product which means that you have to deposit a small percentage of your full value which implies that potential for profit or loss from capital amount is significantly higher than traditional one.
Actually Forex is quoted in terms of one currency versus another. One is known as base currency while other is known as counter currency. As per the trading pro, Barry Sendach, on left side base currency is written while on right you will find counter currency.
- Pips (Percentage in Points)
In the Forex market, the value of currency is given in pips. One pip is the smallest price change that an exchange rate can make