Sunday, April 12, 2009

Forex Trading (1)

All topics about how to increase wealth are interesting to me. One of those topics that i would like to discuss and share with is Forex Trading. Hmm, do you know Foreign Exchange? it is an international term for exchanging currencies amongst countries in this world. Forex itself is an abbreviation for Foreign Exchange. So, Forex Trading market is simply a market where each parties trading foreign currencies. Many years ago currency trading had high barrier to entry, only large institutional firms had access to participate in Forex Trading games because there were strict financial requirements and massive transaction size that had to be complied. Recently Internet becomes a stimulus for Foreign Exchange Brokers (FX Brokers) to appear. Anyone interested in becoming an investor in this game can open account and buy and sell in many quantities through those FX Brokers, because those FX Brokers have hundreds to thousands of investors investing and trading through them so they able to comply minimum transaction size by buying large blocks of currencies and distributing those currencies among investors that trust their funds in FX Brokers. What are those currencies that traded in Forex Trading market? there are four pair of currencies that dominate the Forex Trading market: Euro vs US Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Poundsterling. When you are buying and selling in the foreign exchange currency trading system market your target is to hold a currency that appreciates in value in relation to other currency, so don't hold a currency that its value is depreciating. A simple example is: if you bought 50 Euros for 70 USD then held it for a week, during that time the value of Euro was appreciating, then in the end of that time your 50 Euros are equal to 85 USD. The daily volume of Forex currency trading in this world is approximately US$ 1 to 1.2 trillion and there is no organization that acts as middleman, supervisors, or regulators. Currencies trading or forex trading revolves between banking centers around the world. One thing that you must know, the Forex trade system market is opened for 24 hours, because it's always noon somewhere else in Earth, so it's always business hours in some regions in Earth. So, prepare your body in healthy condition if you want to be an investor that actively buys and sells currencies in forex trading system market :).

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