Before talking about how the Forex market works you should be aware that in the capital market world, specifically in the secondary market, there is a war between buyers and sellers. This fight always has a winner and a loser. So for beginning investors this is not an appropriate place to start.
how does the forex market work
It is possible to play this war on the stock market or the futures market through stock or commodity transactions (gold, dollar, fat cattle), and is known as trade (there are variables like day trade, swing trade, position trade). You need to study technical analysis with graphs and tape reading (flow analysis) to be a winner. And you need a lot of experience not to lose your entire capital.
Now let’s go back to FOREX. It is a global market and you will work with the forex market. This market is very large, and according to Reuters , the daily trading volume in December 2015 averaged $ 4.47 trillion. It is a lot of money involved. With the you can have the perfect option now.
What is Forex?
It is a decentralized market, ie it is not traded in a single place where all buy and sell orders are issued.
Each Forex broker has the banks that provide the liquidity, that is, which provide the currencies for buying and selling to the brokerages.
That’s why rumors have emerged about the legalization of Forex. But as we just want to find investment options where your money stays away from st louis escorts the government, you can invest in Forex. Simply open an account with any Forex broker (foreigner in this case) in any country in the world without any problems.
What is Forex?
Unlike the Futures Market where you will work with derivatives such as live cattle, gold, index, dollar, in Forex you will work with exchange rates between two currencies.