Home / Forex Beginner / What Every FOREX Currency Trading Beginner Should Know

What Every FOREX Currency Trading Beginner Should Know

There is a lot of information out there for a FOREX currency trading beginner. If you have decided that your ultimate goal is to become an expert foreign exchange trader, you should take a look at some must-have information. The first thing that should concern you is to find out what exactly FOREX is all about.

To say the least, the market for FOREX is one of the biggest in the world. Even the stock market which many think is already quite big does not quite measure up. Even if the futures market is taken together with the stock market, the FOREX market would still have a bigger amount of money being traded everyday. .

In the past, the market was a playing field only for the big shots who could present millions of dollars before they were allowed to trade. Today, the presence of online trading companies has opened the FOREX market to those who do not have millions but could afford to dish out thousands of dollars as beginner traders.

FOREX trading involves people buying and selling different currencies of the world. To be exact, every time you trade, you buy one currency while selling another. This is because currency trading always involves pairs. Thus, quotes of currencies will come in one currency paired with another. The major players include the U.S. dollar and the Canadian dollar (USD/CAD), the Euro and the U.S. dollar (EUR/USD), the U.S. dollar and the yen (USD/JPY) and the Australian dollar and the U.S. dollar (AUD/USD).

There are many advantages to trading in the FOREX market. The transactions are fast because everything is electronic. You also are assured that there are often people who would want to trade with you. This is simply because there are so many people who are trading everyday and every hour of the day. You can buy and sell at anytime whenever you want to.

One other attractive aspect of currency trading is leverage. Your leverage capabilities are simply huge with a nearly unbelievable ratio of 200:1. With very minimal initial cash you can already manage a large amount of currency. This is probably the main reason why the market is quite attractive for those who want to increase their earnings impressively.

It is wrong however, to think that you can immediately get rich in FOREX trading. People can lose too in currency trading. Those who do are often those who act impulsively with the hopes of getting rich instantaneously. If you do not take the time to learn the inner wheels of FOREX trading and the technical aspects of leveraging, then you could lose everything you have put into currency trading.

As a FOREX currency trading beginner, the best way to make sure that you have a rewarding and fulfilling experience with currency trading is to prepare yourself before diving into actual trading. If you are a small-time online investor, you can pick an online company that can help you learn. Many of them will allow you to first practice trading with imaginary currencies without any substantial cost or loss to you. Position yourself as a beginner and learn from the seasoned player, you will have a good chance of becoming an expert in this field.

About admin

Check Also

Advice for the FOREX Newbie

Not all people are familiar with forex trading. In fact, most people think that when you talk about forex trading, it has something to do with stocks or bonds. But forex trading is different from stocks or bonds. It involves the trading of currency pairs.


  1. Aw, this was a really nice post. In concept I want to put in writing like this additionally E taking time and precise effort to make an excellent articleÖ

  2. Wonderful blog! I found it while searching on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Thank you

  3. The very crux of your writing whilst sounding reasonable at first, did not work properly with me after some time. Somewhere within the paragraphs you actually were able to make me a believer unfortunately only for a while. I nevertheless have a problem with your leaps in logic and you would do nicely to fill in those breaks. If you can accomplish that, I could surely be amazed.

  4. I have observed that over the course of constructing a relationship with real estate homeowners, you’ll be able to get them to understand that, in most real estate deal, a commission amount is paid. In the end, FSBO sellers never “save” the percentage. Rather, they struggle to win the commission by way of doing a good agent’s task. In accomplishing this, they devote their money and time to complete, as best they can, the responsibilities of an real estate agent. Those duties include revealing the home through marketing, presenting the home to willing buyers, creating a sense of buyer emergency in order to make prompt an offer, booking home inspections, handling qualification inspections with the lender, supervising maintenance tasks, and facilitating the closing of the deal.

  5. I love your writing style really enjoying this web site. “Great services are not canceled by one act or by one single error.” by Benjamin Disraeli.

Leave a Reply

SEO Powered By SEOPressor