What is Forex?
The word “Forex” stands for Foreign Exchange, commonly abbreviated to FX.
Forex is the buying and selling of numerous currencies. In a Forex trade, you buy one currency while at the same time selling another currency, exchanging the two currencies.
The currencies are traded in pairs,
commonly known as currency pairs. Some examples of these currency pairs are EUR/USD which is the Euro-US Dollar and GBP/USD which is the Great British Pound-US Dollar. There are a huge number of currency pairs available for you to trade with.
Unlike futures or shares, there is no centralised exchange location for Forex trading (like the Wall Street for shares). All trading is done over an electronic network or over the telephone.
The Forex market is world’s most traded market, trading 24 hours a day, every day of the year!
The average daily turnover of the Forex market is an astonishing $3.2 trillion!
Who trades in currencies?
The daily turnover of the world’s currencies comes from only two sources:
- Foreign trade (5%)
- Speculation for profit (95%)
Most traders focus their efforts on the biggest and most liquid currency pairs. These are commonly known as the majors. The majors include currencies such as US Dollar, Euro, Japanese Yen, Great British Pound, Canadian Dollar, Swiss Franc and the Australian Dollar. Over 85% of daily Forex trading happens in these major currencies.
What are the risks of trading in Forex?
As with everything in life, there are some risks involved with trading in Forex and should be taken very seriously before you even think about trading. Here is some advice on how you can learn to manage the risks involved.
Choose a reputable dealer – As mentioned earlier, there is no centralised exchange location with Forex, this therefore means the price offered by different Forex dealers and services differ greatly. Professional Medical Forex however is secure and reputable business, backed by leading experts in the Forex industry and regulated. Our aim is to provide our customers with an outstanding range of platforms for them to trade on the Forex market with.
Knowledge is paramount to handling your risk when dealing with Forex. The more educated you are in Forex, the more capable you are to handle your risk. If you trade smartly, you will gain more out of Forex.
How do I start trading Forex?
To get started trading Forex with
Professional Medical Forex, you need to
need to register an account.
There are two types of accounts available to you, a free demo account which allows you
to play the Forex market risk free for a trial period. This can help you get to grips with
the different platforms available, help you decide is best suited to you and your needs.
There is also a live account which is where you can trade on the Forex market in a live environment in real time.