One of the major interests of my clients is getting a Forex licence, since interest into Forex Trading is very popular.
Due to high volume of requests I decided to write an article answering to the most popular questions on Forex of yours! Education is the key of personal effectiveness. Read this article before trading in Forex to have better understanding of it.
What is Forex?
Forex refers to the foreign exchange market and the buying and selling of these currencies. In simple words it is a marketplace where are the currencies are being traded.
How does Forex work?
In FOREX currencies are traded by pairs. Simply, you chose the air of currencies and trade the value of one currency against another. The value of the currency strengthens when money flows into it and weakens when money flows out. These changes in the exchange rates are what give life to the Forex market.
How do traders earn?
Forex traders attempt to predict the direction of the exchange just as stock traders attempt to predict the direction of the value of a company’s stocks. According their predictions made by market and economy analysis and recent news they take decisions to sell or buy.
Forex traders would buy a currency pair when they predict that the exchange rate will increase, and they will sell the currency pair when they believe that the exchange rate will decline. Traders can make a profit of these currency movements.
When can you trade?
Forex trading can be done 24 hours a day, 5 days a week.
What currency should you trade?
US Dollar - the strongest currency
Not surprisingly, the most dominant, the most widely traded, popular and strongest currency is the US dollar. As you can understand the reason of its dominance is quite stable and strong economy of USA. The US dollar is the preferred reference in most currency exchange transactions worldwide. It is the dominant reserve currency of the world.
Here is the list of other currencies that are also popular and stable. These are currency of countries with higher financial power and higher volume of trade all over the globe.
EUR/USD (Euro – US Dollar)
USD/JPY (US dollar – Japanese Yen)
GBP/USD (British Pound – US Dollar)
AUD/USD (Australian Dollar – US Dollar)
USD/CHF (US Dollar – Swiss Franc)
USD/CAD (US Dollar – Canadian Dollar)
Chose a Forex Broker or Dealing center
When you chose a dealing center take into the consideration the following points
- How many years a DC is present in the market – stable DC with solid reputation should exist in the market more than 10 years.
- How many account holders a DC has
- What type of bonuses they pay – bonuses should be relevant, not very high
- Check dealing center regulators – who controls the dealing centers. In any case you can complain to regulators. Usually dealing centers that present in a market over 10 years wouldn’t risk their reputation.
The dynamics of foreign exchange trading is an interesting subject to study, and I encourage you to do it. Investments in yourself can bring you dividends for a lifetime.
This was my guide about trading in Forex, I hope it can help you to trade in a smarter way. Have you ever tried Forex? Feel free to share your experience in the comments below! If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the Ceo of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.