Foreign Exchange (FOREX) is the site where a nation's currency is exchanged for that of another nation. The foreign exchange market is the largest financial market in the world with over $ 1.9 trillion changing hands daily; more than triple the total amount of the stock market and the Treasury of the United States combined.
Unlike other financial markets, the Forex market has no physical location, does not have a central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
The lack of a physical exchange enables the Forex market to operate 24 hours a day, covering different areas across the major financial centers.
It does not take a financial genius to realize that the main attraction of any market or any financial transaction, is the opportunity for profit.
Usually with eight currencies most traded in the Forex market are:
| USD | Dollar |
|---|---|
| EUR | Euro |
| GBP | British Pound |
| JPY | Japanese Yen |
| CAD | Canadian Dollar |
| CHF | Swiss Franc |
| NZD | New Zealand Dollar |
| AUD | Australian Dollar |
Forex trading sessions
Since the London session is the one of the four operations, the best times for operation are 8:00 a.m. to 9:00 a.m. (GMT) and 1:00 p.m. to 5:00 p.m. (GMT), since at that time the London session overlaps with other sessions.
Furthermore, it is best to exchange for half of the week, and that's when the market offers greater liquidity and greater volatility.
As for newspapers, now we must be cautious. Many of the most profitable operations are performed in the moments before or immediately after major economic releases.
You can earn a fortune, or lose, if you do not know. It is therefore important to know what is happening in the world economic scene.
Remember, even when you can operate for 24 hours a day, it is best to plan your operations to seize the best opportunity to maximize your profits and minimize your losses.
Volume of transactions
You should only risk a small percentage of your total balance in each transaction This minimizes your risk, so that even when you lose the entire investment in an operation that does not critically affect your entire account. The recommended amount is 2% of the balance of your account per trade. The most aggressive operators up to 5%, but never more than this percentage.
We recommend opening as small operations in the event that the operation is negative, you can open the opposite operation with an investment greater or higher leverage and thus compensate for the losses.
Demo Accounts - Virtual Money forex
Virtual Money mode works exactly like real trading mode and uses the same range of time, with little difference that there is no risk in operations. We recommend using the practice mode to learn the platform and gain experience in Forex.
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May 28, 2010
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