What Are Forex | Online Forex Guide | Currency Market

Investing in forex, in today’s landscape, is a practice now widely cleared through customs. Many people, also thanks to the advent of information technologies that have undoubtedly facilitated investment operations, have approached the stock and financial market. But do you actually know what forex is? In today’s article we will deal with forex trading, we will analyze its characteristics and peculiarities with our guide with the basics of forex.

What is meant by Fx?

Let’s start by understanding what is meant by Forex Trading. Let’s start with the basics, the full name of Forex (Fx), that is, Foreign Exchange Market, was born in 1875 and was implemented to ensure that each nation could fix a specific amount of its currency to one ounce of gold, in order to then be able to determine the nominal value, but given that gold underwent price fluctuations, from currency to currency, it was decided to insert a system for the exchange of the latter

After the end of the gold standard, in 1944, the new system called Bretton Woods came into effect. The system in question, unfortunately, did not last long and was in fact abolished in 1971.

Finally, in the 90s, trading began to take hold, similar to what is still used today with excellent results. Currently, Forex is an international financial market, in which one currency is exchanged for another.

On trading platforms, anyone can buy a certain amount of a currency, paying for it with a certain amount of another currency. This type of conversion, between one currency and another, facilitates international exchanges and investments, between companies and individuals.

Trading success

What makes the forex market so successful is the fact that it has no geographic boundaries and is easily accessible.

Another point in its favor is that we are talking about an hourly forex market open 24 hours a day, 5 days a week and with the most liquidity in the world. Not bad!

What is forex? The basics of the market

When it comes to trading in the forex market, you need to understand the basics of forex which are basically these:

You exchange one currency for another, buy the currency that is expected to grow in value and sell the currency that is expected to decrease instead.
If the currency purchased by the customer increases in value, he can resell it and make a profit; otherwise, if the currency collapses, you risk losing substantial figures.
To invest with Forex you do not need to be an expert in finance, the trading market is simple to understand, but it is not so easy to start having interesting revenues. In fact, as with everything, even to succeed in this sector, it is necessary to study, apply and a good theoretical and practical preparation.

How to invest in Forex?

As we said earlier, it is advisable, before investing in real money online trading, to train and train through a trial period.

Most brokers, in fact, provide a demo account, without initial investments. In this way, we would have a Forex account with virtual money to invest.

After gaining experience with this type of trading simulation, you are ready to enter this industry. To do this, you need to find out how to open a trading account with a broker company, trading experts, after which, you can deposit money in the trading account, via PayPal, bank transfer or credit card. All this, of course, can also be done online.

It should be remembered that it is possible to invest in forex using ad hoc platforms, this type of trading is carried out only online, the exchange market is completely virtual, and it is therefore advisable to have a good knowledge of the reference technologies.

Who can invest in Forex?

In the Fx market you can find different subjects, from banks to private investors, from traders to institutional investors.

If we analyze in detail, the operations on the market can be carried out by categories such as:

Private investors, who in this case deal with buying and selling to try to have a good income
Then there are private companies and multinationals, they too can decide to invest by buying currencies
We also find banks and credit institutions, which can operate in the Forex market today to accumulate foreign currency and open investment funds, which in the sector seek a profit for their clients who choose to invest in their financial operations.
Investment in Forex is possible for various individuals, both individuals and companies of various depths.

Best times to trade

Let’s go now to see the opening hours and what are the most favorable times to invest in trading.

Let’s start by saying that the trading market is open from 23:00 on Sunday to 22:00 on Friday (it is open every week for 119 consecutive hours, practically always).

The break on Saturdays and Sundays is due to the fact that all over the world the financial markets are closed on the last two days of the week.

Hourly Forex sessions

Now let’s see in detail the Forex times of the various sessions, which are four sessions to be exact:

• Sydney opens at 9pm (UTC) and closes at 6am (UTC)
• Tokyo, opens at 00:00 (UTC) and closes at 09:00 (UTC)
• London session, opening 07:00 and closing 16:00 (UTC time)
• New York, opens at 13:00 and closes at 22:00 (UTC)

Best time to trade

Do you know what are the time slots and the best days to invest in Forex? Usually the three hours of main market sessions are the best, because at that time the traders find the best opportunities, within the first and last five minutes of each hour the traders will offer volatility and difficult market movements.

Forex indicators what are they?

Now let’s see what Forex indicators are and what they are for. Specifically, it is a numerical value that helps the investor make a decision on the market.

These reliable indicators are formed on the basis of certain information on the performance of the financial market.

On the other hand, trading indicators are based on several variables such as:

• Opening price and closing price
• Maximum and minimum price
• Volume of Forex transactions

The idea behind their operation is simple, Forex markets tend to repeat themselves, and therefore, certain conditions mutate the same behavior indefinitely and so do the information and data associated with them.

Is it worth investing in Forex?

Surely the question arises: is it worth investing in Forex without getting lost? It is not quite so!

An infallible Forex indicator does not exist, on this you can be sure, also because if a similar indicator existed, the profit that could be obtained from trading would be zero, because the profit in question with Forex trading on a financial market is as much higher as the greater the degree of uncertainty in real-time quotes. Without this equation, the final result would fail accordingly.

In conclusion, a more reliable Forex indicator is able to offer indications that can provide realistic Forex forecasts.

Our advice is to always be wary of those who boast easy trading earnings because many times the investment scam is just around the corner.

Well dear friends of Financial Empires, thanks to our article on what Forex is, you have all the information you need to start investing with Forex and making money from Forex investments.

Financial Empires, The Editorial Staff

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