Online forex trading is the future of the global financial markets. Many traders from other markets like stocks, futures, options and commodities markets are moving into online forex trading in droves on a daily basis. The reason is that, the global forex market today, can boasts of average of over $4 Trillion Dollars daily turnover. This is over 10 times greater than what all the major stock exchange markets around the globe. So what is forex?
The word Forex stands for the foreign exchange market. This is also referred to as the FX, Spot FX or Currency market or simply FOREX. All of these names are just several ways of describing the very same market. Formerly, only the “big boys” could play around in this market. They usually had a minimum of $10 million to $50 million to throw around in this market. It was reserved basically for banks and big institutions.
However, with the advent of the internet, online forex trading had been opened to the general public, as they can now trade in smaller sizes that would be feasible for the “average man”. That means, you and I can now benefit from this “goldmine” anywhere in the world trading forex online.
Forex trading simply means the trading (exchanging) of money. It involves the simultaneous buying of one currency and the selling of another. The “exchange rate” is what you will see quoted. This determines how much currency that another currency can buy, for instance, buying currency pair of GBP/USD or USD/JPY.
This informs the reason one single news report like the Non-Farm Payroll (NFP) from the U.S.A. and so many others like it can move the market such that that a trader can make profits of over $5,000 in less than 30 minutes on a very good day. I mean $5,000 cool pure profits in 30 minutes. Mind you only 50 pips can generate such amount in 30 minutes or less.
Let’s do a little calculation on this. Let say with standard account where 1 pip equal $10, a trader could enter with 10 standard lots and it can be calculate like this: 10 lots x $10 per pip. Then, 50 pips x $100 = $5,000. I believe this logical enough to convince you that there is no hype but absolute truth.
A very important point to note is this; if a company in United Kingdom with branch offices in United State of America, Japan, Canada or even any other country decide to transfer say U$D10b in the next five minutes to their US branch, whether you know it or not, that singular move is going to move the GBP/USD down by a great number of pips and all these can translate into profits to a trader who is holding short position (s) on the GBP/USD pair.
However, for you to successful in your online forex trading, you need to equip yourself with the basic fundamentals like learning forex, the tools, Brokers, Charts reading, Signal review and more.
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