Forex Trading - Getting Started.

Executive Summary about forex Trading By Philippa Holmes & edit by halimdanga

Forex Trading: a Beginner's Guide

The forex market is the world's largest international currency trading market operating non-stop during the working week. Most forex trading is done by professionals such as bankers. Generally forex trading is done through a forex broker - but there is nothing to stop anyone trading currencies. Forex currency trading allows buyers and sellers to buy the currency they need for their business and sellers who have earned currency to exchange what they have for a more convenient currency. The world's largest banks dominate forex and according to a survey in The Wall Street Journal Europe, the ten most active traders who are engaged in forex trading account for almost 73% of trading volume.

While a currency may increase or decrease in value relative to a wide range of currencies, all forex trading transactions are based upon currency pairs. Because the markets for currencies are global, the volumes traded every day are vast. For the large corporate investors, the great benefits of trading on Forex are:

* Every one of the world's free currencies are traded - this means that you may trade the currency you want at any time
* Lots of options for zero-commission trading

How the forex Market Works

The basic tool for trading forex is the exchange rate which is expressed as a ratio between the values of the two currencies such as EUR/USD = 1.4086. One pip, therefore is the smallest unit of trade.

With the forex rate at EUR/USD = 1.4086, an investor purchasing 1000 Euros using dollars would pay $1,408.60. If the forex rate then changed to EUR/USD = 1.5020, the investor could sell their 1000 Euros for $1,502.00 and bank the $93.40 as profit. Is forex Risky?

When you trade on forex as in any form of currency trading, you're in the business of currency speculation and it is just that - speculation. Search the internet for a good forex trading tutorial and study it in detail- a bit of good forex education can go a long way!. Be vigilant, however, watch out for forex trading scams. The forex Trading Systems

Most of them either utilise forex charts and by means of these, identify forex trading signals which tell the trader when to buy or sell. Some utilise automated forex trading software which can trigger trades automatically when the signals tell it to do so. The minimum trading size for most trades on forex is usually 100,000 units of any currency and this volume is referred to as a standard "lot". You will often see the term acciones trading forex and this is just a general term which covers the small guy trading forex. Small-scale trading facilities such as these are often called as forex mini trading.

Online forex trading gives you direct access to the forex market and there's lots and lots of companies out there who are in business just to deal with you online. For access to a mass of articles on forex and a large number of videos, please visit my site on forex trading.

My web site http://www.master-forex-trading.com carries thousands of articles on forex trading and a very large number of videos on the subject.