Learn Forex Trading
The first and most important step for mastering the Forex Market is learning the basic concepts. Discover all the ‘whats’, whos’, ‘hows’ of the industry by selecting one of the choices below.
Forex stands for ‘Foreign Exchange’, also known as FX Exchange, refers to the simultaneous buying and selling of currencies by investors and speculators at any given time when the markets are open. For instance, British pounds (GBP) are exchanged for Euros (EUR) = GBP/EUR; or United States Dollars (USD) are exchanged to Japanese Yens (JPY) =USD/JPY.
Interestingly enough, without even knowing it, we participate in the FX markets every time we exchange one currency for another; the same as travellers do when they want to sell their own currency to buy the currency of the country they are visiting. When we exchange currencies, we are charged with some inevitable ‘exchange rates’. These rates fluctuate daily, a fact that determines whether you earn or lose money from the given exchange rate.
Currently, the Forex market is the largest, most liquid financial market in the world with an average of 5 trillion dollars exchanged every day!
There are many players in the forex market:
The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks.
Central banks are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent.
Investment Managers and Hedge Funds
After banks, portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market.
Firms engaged in importing and exporting conduct forex transactions to pay for goods and services.
The volume of trades made by retail investors is extremely low compared to that of banks and other financial institutions. But the forex trade is growing rapidly in popularity. Retail investors base currency trades on a combination of fundamentals (interest rate parity, inflation rates, monetary policy expectations, etc.) and technical factors (support, resistance, technical indicators, price patterns).
Trading on the Forex market is one of the most lucrative investments available.
The buying and selling of currencies is implemented in pairs of currencies. For example, you buy the EUR/USD currency at its lower price and you sell it at its highest price in order to earn money.
If, for instance, you bought 1000 USD (US dollars) last year and the equivalent at the time was 800 Euros, this year the value of the USD may be 900 or 700 Euros (EUR). In this way, if you decide to sell now you will lose or earn 100€ respectively.
The broker is responsible for providing brokerage services to the trader which will enable him to trade. The trader has the opportunity to select from a variety of different types of accounts, types of platforms and all trading conditions offered.
It goes without saying that a big part of successful trading is choosing the RIGHT FX Broker!
When it comes to trading, you need to find a Forex broker that will fulfil all your requirements and make your trading experience as smooth and easy as possible.
Below you will find essential criteria which you should consider when selecting the ideal broker:
Regulation – a broker needs to be properly registered and licensed by local regulating authorities.
Spreads – low spreads are always an attractive feature
Leverage – a flexible leverage is preferred
Fast Execution policy – the speed at which trades are executed is always a star attraction when choosing a broker.
Account types – a range of trading accounts should be available to cater the needs of all traders, irrelevant of your experience and knowledge in the field.
Demo Accounts – these constitute a substantial tool for novice traders to acquire the necessary knowledge and trading experience without the risk of losing their real money.
Trading platforms – best to offer modern, technically advanced online trading platforms, all facilitating the art of trading
24 hour customer support – this is essential! You have the knowledge that you can always contact someone for support and assistance. This feature provides a feeling of security and assurance.
Here is why you should join the CTTIF Experience!
An International Business Firm incorporated under registration number IBC 12345
A pure ECN/STP trading environment
Fast execution! No desk-dealing interventions
Depth of market and Direct access to live-stream prices
Choice of modern platforms
Choice of account types