Introducing to Forex

 

This tutorial is directed to teach the trading beginners what Foreign exchange market is and what currency trading is all about.
There are many chances to get the profit now, but currency trading always was and always will be popular because of some really great profit that some traders get. Known for the fascinating sums like 1.5 trillion dollars traded in one day, Forex quickly became the Mecca of all the people who wanted to make currency trading their business.
Combined from the parts of the words “foreign exchange market”, Forex financial market is now claimed to be the largest financial market in the world. It’s not tied to the actual stock exchange and stays in the most desirable goal to all the traders around the world. Forex takes his history from the ancient Babylonians to our days, all over the world, from changing sticks to stones to large financial operations in banks and at home. There are Forex traders, internationally known as billionaires.
So, the Forex trading is about trading currencies one to another due to the market needs and prices that are set. Currencies are traded in pairs like USD/EUR, where the currency before the slash is called basic currency, and the currency after the slash is quote currency. The exchange rate finds out during to the interaction of market forces, with supply and demand.
Due to the floating of prices and speculation on the trade trader can get the profit from the operation. Profit is counted in pips – the smallest Forex unit, which is counted in 0.0001 from the difference in buy-sell prices. The more pips trader gets, the higher is the profit.
Defining the conditions of getting profit is easy. The trader sells the currency which is seemed to fall in price and buying currency of the country which tends to rise in price soon. To trade successfully, the trader has to have some knowledge in economics, and follow some Forex trading rules, like money management and Forex technical and fundamental analysis.

What’s so attractive about Forex, is the independence from the Economy. Whatever happens, there is still a chance to get the profit by trading, adjusting to the market conditions and that’s all. Depending on the country’s economy, currency of every country can be floating in its price, and that gives the great possibilities of trading this currency. The trader who has some skills in recognizing the market trends and going into financial analysis can trade really successfully and get high profits.
Just a few years before trading Forex was available only to large financial institutions, banks and inter-world investments. Things chance quickly, and now every trader can join the big world of Forex and trade just from the homeplace, using the Personal Computer and World Wide Web. Forex no longer has to be the main work in trader’s life only, but the additional work to have the extra-profit with currency trading. For the busy people, this option is available by choosing from a wide variety of different automatic trading software, developed to trade without human intrusion.
The world information progress made the foreign exchange trading available for different kinds of people who want to enter the market, but only those who are seriously into the trading will not fail and end up with losses. Forex trading is risky, but the trader who follows Forex trading rules, manages his losses and learns the market carefully can stand strong and avoid the risks. It’s highly recommended to have the great psychical health and serious intentions, because Forex trading can give you not only the high profits, but great losses also, if the trader doesn’t manage to be the careful and serious in his trader’s work.
Forex currency trading is not about luck, but about two combined things: knowledge and diligence. Combining them, trader can reach the highs of Forex trading. It’s recommended to learn about Forex history, Forex money management, Forex Analysis in order to get the knowledge about Forex and Forex trading. There are more tutorials on this site, that will be helpful to the trader, who is beginning his trader’s way in order to improve the knowledge. Diligence is the matter of character the Forex trader should develop in order to get on the top of Forex money Olympus. When these qualities are working together, the trader can and will be successful.