What is the forex market?
The Forex means a market where currencies are traded. The most distinctive feature, which differs from a lot of other markets where currencies are traded too, is that Forex has no central market. Forex trading is done electronically over the counter. This means all transactions are executed through computer networks amongst traders worldwide instead of the centralized exchange.
This market is open all day and night, five days a week, and half of the week. Since currencies are traded worldwide in almost every time zone because of the major financial centers such as Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo, and Zurich, this means as the US trading day ends, then the forex market opens in Tokyo and Hong Kong. This means at any given moment, the forex market could be very active and prices change constantly.
How is the forex market traded?
The Forex market is indeed the only absolutely continuous and uninterrupted trading market in the world. Since it has already been mentioned, the market operates for 24 hours a day, and at any moment prices can move. Some time ago, the leading role in the forex market belonged to institutional firms, including large banks, acting on behalf of their clients. Nowadays, in the recent years, more and more retail traders and investors of all sizes have taken part in it.
Where is it?
The nature of the Forex international markets is that there is no existence of any physical building or any center where trading activity takes place. In fact, Forex trading is a network of connected trading terminals and computer systems The participants in the Forex markets are institutions, investment banks, commercial banks, and even retail investors from all over the world.
How to start forex trading
Starting trade in forex is almost like trading in the stock exchange market. In the following, we explain how to enter the forex market:
- Learning of market analysis and formulation of trading strategies
- Setting up a brokerage account
- Start of positioning
How to learn market analysis?
The start of trading in the forex market without learning the basics of market analysis may result in great losses and eventually loss of the capital. This is especially the case given that the forex is a 24/7 market and can shift at any time. As such, it is important to receive a degree of training before commencing trading within this specific market. Undeniably, one of the best methods through which one may learn the ropes of the forex market is to participate in a forex training class. Professor Toofan conducted private Forex classes that could guide you from any skill level right to a professional trader. The classes will make one a pro trader in no time.