Forex. What Is It?

   Forex or foreign exchange market - the largest financial market in the world with a volume of trades over 1.5 trillion dollars a day. Unlike other financial markets, Forex has no physical expansion location and central exchange. It operates through an electronic network of corporations, banks and individual players, operating with currency transactions.

  

  The essence of Forex - money. Money around the world are bought, sold and traded. Forex involves buying and selling currencies for profit. For example, you can earn income by buying the Japanese yen when it rate against the dollar is anticipated to grow, and sell when it is the opposite situation.

  Forex trading requires knowledge of a variety of special terms. The symbols used for the representation of currencies in the Forex market, consist of two parts. The first part - the first currency, the second half - the second currency used. Symbol "usdjpy" means US dollars vs Japanese yens. It is necessary to learn how to navigate in the notation of currencies.

  Trading in the Forex market, you can use the services of a broker. If you decide to hire a broker, there are several critical factors that must be taken into account when choosing. The first important point - give preference to a broker offers low spreads. Since Forex brokers do not charge commission they earn on spreads, or the difference. In the search of a broker note on these issues and compare candidates according to criteria.

  The broker must rely on large financial institutions. Bankers in the Forex market are usually associated with large banks or other financial institutions. Note that if the broker is not associated with the bank, it is not necessary to make a choice in his favor. There are lots of “fake” brokers who can just steal your money in different ways (artificial rate change, account blocking, etc.), so be careful.

 As for me, Forex is the easiest tool to start learning about online trading.