Trading Forex Guided TourWelcome to our Trading Forex Guided Tour where we strive to bring you the best brokers and basic induction to trading Forex. Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. The average is more than $5.1 trillion in daily forex trading. Open a a Demo account today to get more familiar. Trading Forex Guided TourThe foreign exchange (also known as FX or forex) market is a global marketplace. Which exchanges national currencies against one another. Because of the worldwide reach of trade, commerce, and finance. Forex markets tend to be the largest and most liquid asset markets in the world. Currencies trade against each other as exchange rate pairs. For example, EUR/USD. Forex markets exist as spot (cash) markets as well as derivatives markets offering forwards, futures, options, and currency swaps. Market participants use forex to hedge against international currency and interest rate risk. To speculate on geopolitical events, and to diversify portfolios, among several other reasons. Tour of the Forex Market.The foreign exchange market is where currencies are traded. Currencies are important to most people around the world. Whether they realize it or not, as currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the Australia. and want to buy bread from France, either you or the company that you buy the bread from has to pay the French for the bread in euros (EUR). This means that the Australian importer would have to exchange the equivalent value of dollars (AUD) into euros. The same goes for traveling. A French tourist in South America can’t pay in euros because it’s not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, at the current exchange rate. A Brief History of ForexUnlike stock markets, which can trace their roots back centuries. The Forex market as we understand it today is a truly new market. Of course, in its most basic sense that of people converting one currency to another for financial advantage Forex has been around since nations began minting currencies. However the modern Forex markets are a modern invention. After the accord of 1971, more major currencies were allowed to float freely against one another. The values of individual currencies vary, which has given rise to the need for foreign exchange services and trading. Spot Market and the Forwards & Futures MarketsThere are actually three ways that institutions, corporations and individuals trade Forex. The spot market, the forwards market, and the futures market. Forex trading in the spot market has always been the largest market because it is the “underlying” real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading and numerous forex brokers, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future. Compete Risk Free with $100,000 in Virtual CashOur Trading Forex Guided Tour puts your trading skills to the test and with our FREE Stock Simulator, with thousands of traders taking part, trade your way to the top, Submit trades in a virtual environment before you start risking your own money. Practice trading strategies so that when you’re ready to enter the real market, you’ve had the practice you need. Try our Stock Simulator today with $100,000 in Virtual Cash. |