Foreign Exchange – abbreviated Forex or FX – is a form of investing. However, you do not invest in shares and options, but in foreign currencies. You sell this currency and purchase new currency elsewhere via direct connections. This way there is a chance that you will accumulate wealth very quickly. Forex trading is on the rise and this is noticeable on the internet.
Not just money
Forex trading uses foreign currencies, such as the Australian Dollar, the Canadian Dollar, the American Dollar, the New Zealand Dollar, the Japanese Yen, the Euro and the Turkish Lira. In addition to foreign currencies, you can also invest in the prices of gold, silver and even oil.
Trade in oil
Oil prices are part of the economic news every day. Prices are therefore constantly changing and that makes quite a difference. Because oil prices are linked to the US dollar, the dollar will also vary a lot. Traders are able to determine trends in a simple way, because when the dollar falls, it often indicates a rise in the price of oil. And the same applies the other way around.
The operation of trading in gold, silver and oil, also known as spot trading, is quite simple. It basically happens the same way as when you trade currencies. In the case of gold, silver and oil, the corresponding currency will be the US dollar.
The fact whether Forex is a type of gambling is still regularly discussed on the internet. It can be stated that Forex is also a form of gaming, albeit one that you can still determine to some extent. You can sometimes predict what certain currencies will do and that is not always the case in the casino. Just as you will never know the outcome with roulette, with Forex you also do not know in advance whether a purchase is really good. But just as you can estimate things in poker, you can also make estimates in Forex. Because any attempt to trade on the Foreign Exchange without prior study and/or analysis can be compared to a game. And just like in the casino, you can both win and lose.
What makes Foreign Exchange attractive?
The fact that the trade is commission-free already makes a big difference from other trades. For example, the income you get from activities such as currency trading comes from the bid and ask rates. With Forex it is easy to invest in the short and long term. A fundamental analysis, as is the case with shares and companies, is not necessary and reliable information can be found everywhere. The Forex is also open 24 hours a day for five days. So you can trade when it suits you best.
Anyone who seriously plans to get involved in Foreign Exchange would do well to practice in advance. Many account providers offer the option to start with a small capital if you sign up for an account with them.