Forex or Spot Forex is the exchange of foreign currencies. In Forex market you can buy a currency of a country instead of selling currencies of other country. For example, Dollar is the currency of USA and Pound is the currency of UK. In Forex market you can buy dollar instead of selling pound or buy pound instead of selling dollar. There are also some other currencies for buying and selling in Forex market like AUD, NZD, CAD, CHF etc.
How to earn from Forex market:
The currencies of a country are changing all the time. You can see that sometimes dollar become strengthen against pound and sometimes pound become strengthen against dollar. This is happening all the time for all the currencies of the world.
Suppose you have some dollar. When the value of dollar becomes high against pound, at that time you can buy pound instead of selling dollar. Again when pound become strengthen against dollar, you can buy dollar instead of selling pound. Now I am clearing the matter, suppose you had 100 dollar. You bought 80 Euro instead of selling 100 dollar. Again later when the value of euro increased, you sell them and get 120 dollar. Thus you earn 20 dollar. This is the process to take profit from Forex market.
Why you will do Forex trading:
Forex trading is a low capital investment. It’s possible to start your Forex trading with $1. Most of the brokerage offer to do free demo trade. So you can experienced yourself by doing demo trade and it’s completely free. If you can get success then you can invest money and start real trading. All brokerage offer leverage and it will be more than 200% of your investment.
Forex market is a global 24 hour market. Forex market remains open from Monday to Friday, 24 hours a day. So if you are a businessman or an employee, you have option to do trading in your favorable time. You can take profit any time from all condition of the market.
Forex trading can make a lot of money for you. But you should learn the business before starting the trading. If you able to follow the process, you can make a huge money per month without investing a lot. I will discuss the advance level of Forex trading later. Thanks for reading my blog.