What is forex?

What Is Forex Trading
Forex trading is the trading of currencies of different countries. Forex is short for Foreign Exchange (Currency Exchange). An example of forex trading is the buying of the Euro (European currency), while simultaneously selling USD (currency), it can be abbreviated as EUR/USD.

In the shadow of a layman, forex trading is an activity exchange money at the Money Changer, buying and selling foreign currency manually through the money changer. In fact, trading forex different from manual transactions such as in the Money Changer. Generally, the purpose of someone to buy and sell money at the Money Changer is because of the need to exchange currency for transacting in a country.

While forex trading done done online with the purpose of profit. It should be understood, forex trading is a business activity, investment, could even become a profession. Online Forex trading with the aim to make a profit like that done by forex brokers.

Online forex trading principles are essentially the same as buy and sell money at the Money Changer. Advantages of trading forex can be obtained from the difference between the buying price and the selling price. For example, we are buying U.s. dollars as much as $100 at the time of the exchange rate of the Rupiah against the dollar is at a value of Rp13,250. Dollars we spend to get $100 to be Rp1,325, 000.

A week later, the U.S. dollar exchange rate value of the burgeoning to be Rp13,300. A trader will sell $100 which she had with Exchange rates this week. So she can profit Rp50,000, because people who want to buy its $100 having to issue Rupiah as much as Rp1,300, 000.

Well, online forex trading business doing it all not physically. They are transacting in virtual worlds through a container called the software or trading platform.

The Forex Market
In contrast to traditional markets. Because here are traded are currency, then its market (where the traders/market participants do the selling) is called with the forex market. Anyone this forex market? very diverse: could the multinational banks, large companies, countries, institutions, speculators, etc.

Given the global scope and the culprit, the forex market is becoming very interesting and profitable. Why? Its global however, the forex market being the biggest money market ($4 Trillion/Hari), and very illiquid (can buy and sell with market prices regardless of the amount). The forex market is also open 24 hours non stop due to time difference world. So, we can trade at any time in accordance with our spare time.
In addition, the forex market has no physical location in particular. This is where the trading platform functions referred to above. Trading platform describe the condition of the forex market. Process transactions online forex trading can happen quickly and in great abundance.

The Purpose Of Forex Trading
Simply put, the purpose of forex trading is to gain profit from the rise and fall of currency exchange rates. Market conditions and prices in forex market moves with very dynamic, can be changed at any time by quickly responding to the events be it economic, political, war, disaster, etc.

Especially for countries with advanced economies and strong like the US or Japan, there is a little sensitive information, then the price of its currency could move up and down. This by traders was seen as a chance and opportunity to do trade.

Forex Trading Opportunities
The Internet has made an awful lot of revolution in world trade, including in the world of forex trading. With the internet, forex trading can now be performed by anyone.

In the past, forex trading can only be done by Big Player (banks, State, institution) only. But, now everyone can trade. You and I can online forex trading easily and with as little as 10 dollars.

Forex Risk
Forex is like a double-edged sword. With forex can make us quickly became rich, but the reverse is in an instant can also erode the capital runs out. No matter whether you consider a forex investment or as an ordinary trade forex, which obviously has a high degree of risk. So to understand the true risk in forex and not to misstep.

It Is Important To Note
The Forex market is the largest and most liquid market in the world. Forex trading can be done anytime, 24 hours a day. Monday to Friday. Starts from:

Market Australia (Sydney) 05.00-14.00 WIB.
Then to Asian markets (Tokyo), namely Japan, Hong Kong, Singapore & 07.00-16.00 WIB.
Then to European markets namely Germany and the United Kingdom (London) 13.00-22.00.
Market (New York) 20.00-05.00 (the next day).
With recent developments (Internet), forex trading can be done online (anywhere) with the help of a laptop as well as gadgets like smart phones.

Fast Forex can make you rich or poor. Because the risks are great.