SUPER...!!! Mat Dan ‘Gugur Jantung’ Dipanggil Timbalan Perdana Menteri Naik Pentas. Tahniah!

How does forex trading work?

Forex traders come to the market with one main aim: profit from the sometimes minute changes in value of one currency against another. They do this by basing their investment decisions on whichever way they think forex prices will fluctuate in the future.

For example, if experts anticipate that the Australian dollar will decrease in value against to the US dollar, forex traders will sell their Aussie dollars and buy US bucks. If the US dollar then increases in value, the trader gains greater purchasing power to buy more Australian dollars than they initially had — resulting in a tidy profit.

On the global forex market, currencies are quoted in pairs — that is, in terms of their value against other currencies. In the forex market, these pairs are expressed as AUD/USD, GBP/EUR and USD/GBP. You’ll sometimes hear these pairs referred to by nickname. Keeping things lively, AUD/USD is often called the “Aussie,” EUR/GBP the “Chunnel,” GBP/USD the “cable” and USD/CHF the “Swissy,” among others.

You’ll find a range of trading platforms to choose from for forex. To place a trade, you simply select what you want to buy or sell and indicate the amount of your transaction.

What are the benefits of forex trading?

Forex trading has many advantages for the right investor, starting with its 24/7 accessibility. Unlike the New York Stock Exchange, which is open weekdays only from 9:30 a.m. to 4 p.m. EST, the global forex market runs Monday through Friday around the clock. This means that forex prices constantly fluctuate, offer plenty of investment opportunities for traders.

Investors use leverage to significantly increase their profits. Leverage allows investors to conduct a trade without putting up the full amount of that trade, controlling a large amount of money using a little of their own and borrowing the rest.

The forex market offers investors the highest achievable leverage among other markets, which means there is a much higher potential for profit from a small initial outlay. Unfortunately, this also means a greater risk for suffering a loss.