Forex is a shortened term used for “Foreign Exchange”, and it is the process of buying and selling currencies.
The “Forex” is very simplest thing, for instance if you change Japanese Yen to American Dollars, that is one “Forex” completed.
24/5 and the biggest financial market
The Forex market operates 24 hours around the clock from Sunday night through Friday.
And it is traded by comprises central banks, currency speculators, organizations, governments, retail investors and international investors etc.
The size of the market is still increasing now and the foreign exchange market is the biggest and most liquid financial market in the world.
When to trade Forex?
There are more than 100 different currencies in the world, and most of them are traded in the financial market right now. (if today is not the Saturday or Sunday.)
Forex trading includes also when you exchange money at a airport or even sending any products to overseas.
So, if there is any currency exchange is related, Forex market must be involved in the process.
But when people say “Forex”, this usually means that the “Forex” market with brokers or banks where leveraged tradings are made.
Why trade Forex?
Think of buying 1 USD with 100 JPY and selling that 1 USD with 110 JPY.
That means that you actually made 10 JPY as profit.
This is how the Forex trading works though, the price rate of currencies are not so volatile as you think, as reaching 110 JPY from 100 JPY may usually take a few years or more.
So that means that even if you have bought 1,000 USD, that will give you about only 100 USD in this case.
Well, if that is the case, Forex trading is not for someone with medium money…
But there is a solution for you, and that is the “Leverage”.
iForex offers up to 1:800 leverage to traders for Forex trading, this means that when you trade Forex with iForex, you will have 800 times more funds available in the account and profit/loss will be also 800 times more.
So if you made a deposit of 1,000 USD, you will actually have 800,000 USD available for trading.
That is the leverage offered by iForex and that is one of the reason why people trade Forex.
Leverage = Debt?
No it is not a debt, but it is the margin provided by iForex for free for clients of iForex.
Also iForex has set NBP(Negative Balance Protection) to all trading accounts, you will not lose money more than you deposit.
In any market situation, your loss will be limited to the amount you deposit before.
With Forex trading in iForex, you can:
- Trade with 1:800 leverage
- Limit your loss to the deposit amount
- Make profit 800 times more and unlimited
How to start trading Forex with iForex?
There is a simple 5 steps to earn money by trading Forex.
- Open an account with iForex
- Make a deposit
- Place orders
- Closed orders
- Make a profit
If you are not sure about how to place orders and how to see the prices etc, you are recommended to open a Demo account for free with iForex and try it by yourself.
Demo trading account will give you the exact same situation as live ones, and you can see how to make money and lose money.