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Forex stands for Foreign Exchange and includes trading in foreign currency. The idea behind this trade is fairly easy money. The trade is based namely on buying one currency and selling of one kind another currency type. With Forex - FX also called - that way you can trade currencies. This is big money to earn.

Investments

Investing is about the same. If you buy shares, you invest in a company where you have confidence. The value of your shares rise or fall and sell them as it further. Somewhere seem Forex, Forex or process, or on such trade. It is not strange that Forex is widely used as an alternative to this trade, when the stock options and less walking.

1 trillion U.S. dollars

Turnover in Foreign Exchange - which in Dutch is also equivalent to currency trading - is less than 1 trillion U.S. dollars a day. That makes Forex the largest financial market in the world. A major advantage of the Foreign Exchange market is that it runs 24 hours a day. Thus it is possible to constantly changing prices to adjust. The Forex offices are located in four major cities, namely New York, London, Tokyo and Sidney.

Speculative

There is only one small part of the Foreign Exchange market from national governments or companies to use global Forex business. Most currency trading is therefore speculative. The Forex market is not regulated, what the stock market is the case. There is no one central location where trading takes place and they are usually made between the parties by telephone and computers. The electronic connections in the Forex are the order of the day.

Acting

The point of a transaction on the Forex to that two actions occur simultaneously. For example involves buying one currency while selling another currency. The transaction can be implemented, is also called a cross. It is therefore possible that you sell one euro to U.S. dollar, or British pounds for a Russian ruble. If the rates allow you to earn thus much money in relatively little time.

Popular

Trading on the Forex is terribly popular. This is partly because it acted with a so called Margin. Through the Margin trading allows money amounts larger than your own capital. In general, it worked with small margins, such as 1%. If you use 1% as margins on one million U.S. dollars, get out on $ 10,000. If this is the amount that you are in your account, you can invest and act that way. If you like this way of working - which is also called gearing - using, you are enabled to quickly return. But remember, while you also run the risk to lose your entire fortune to play. It is for this reason not advisable to make maximum use of these so called leverage.

Without risk

If you want to trade on the Forex without any risk, you can in almost any company that acts on the Forex called a demo account open. Then free action on the Forex without cost you anything. Second win in this case nothing. Yet it is an interesting way to have access to trade in the Forex. On the Internet to find sites that are there have made a sort of game, so you can get playful with Forex trading.

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