Getting started with Forex

Hi my forex trader friend

One by one i'll be posting here some tips i've found and used with this incredible system named Forex

But let's begin from the start.

What is Forex?

The name Forex is used for the "Foreign Exchange Market", it means, the place where you can buy and sell different currencies around the world.

This systems has evolved since earlier 70's, but nowadays it's a huge market where millions of dollars are earned every single day.


How does it function?

Basically there are two parts, who buys and who sells, and the operation is made at the currency value in the moment of the transaction.


Why is so attractive this system?

There are a lot of reasons:

• The huge trading volume
• Liquidity of the market
• Large number of traders in the market
• Geographical dispersion, you can trade in forex almost anywhere in the world
• The trading schedules, 24 hours per day, except on weekends
• A lot of factors affect the market, so you have a lot of opportunities to make money
• High profit margins compared to other markets
• Low investment
• Leverage

Who can participate?

Everybody.

The basic traders are:

1. Banks - They trade with huge budgets, this mantain the market running
2. Commercial companies - a lot of companies who trade with a considerably lesser budget than banks.
3. Central Banks - Some banks who try to control the money supply, interest rates and inflation.
4. Hedge funds and speculators - Minor companies who trade in a speculative mode because they don't have a solid financial plan to trade with.
5. Investment management firms - This companies manage large accounts.
6. Retail Forex brokers - we can divide this category in two: Retail traders where we can place all the people who participate in forex indirectly through brokers or banks. And Market Makers.

Well, for now, I'll stop here, later i'll continue with the introduction to Forex Trading System.

See you soon