WHAT IS FOREX TRADING?
THE WHAT AND WHY OF FOREX MARKET.
WHY YOU SHOULD BEGIN YOUR TRADING JOURNEY IN THE FOREX MARKET
A BEGINNER’S GUIDE TO FOREX TRADING
Forex – Foreign exchange is simply the exchange of currencies. Your vacation in the Maldives or the chilly nook of the swiss alps starts with exchanging your currency to the currency of the country you visit.
Forex trading is the biggest market in the world; traders buy and sell currencies depending on the exchange rate. This exchange rate is determined by supply and demand. The foriegn exchange market is open 24 hours a day and trading is mainly done over-the-counter.
The biggest participants of the Forex market are banks, financial institutions & brokers. Due to its accessibility and ease of understanding, the market has been ever-so-welcoming to retailers and traders at the beginner level.
What are the benefits of FOREX TRADING?
- Beginner Friendly
As a beginner in the trading field, some of the factors that you would look for are ease of trading and low investment. Forex trading ticks all of these boxes. Hence its popularity among hobbyist traders. One thing that should not be compromised is learning the skills and knowledge required to succeed in this market. - 24 Hours Trading
The forex market, unlike the stock market, is open 24 hours a day from Monday through Friday. Although trading does not happen on the weekends, the currency rates keep fluctuating.This 24 hour trading window is possible because of its over-the-counter operations and the different time zones around the world. While trading can be done at any time of the day it is beneficial to take note of peak trading periods. - High Liquidity
An asset is pronounced liquid when it can be bought or sold with little affecting its actual value. The Forex Market is said to be highly liquid due to the volume of its trades and the 24 hour trading mechanism.Not all currency pairs are super liquid. Currency pairs have varied liquidity statuses depending on how much they are being traded in the market. - Low Transaction Costs
The Forex market has some of the lowest trading costs as compared to other financial markets. Brokers do not usually charge commission due to the fact that the Forex market is not centralised.
The only cost that has to be borne is a spread, this needs to be paid to the broker for facilitating the trade. - Carefully Regulated
The Foriegn Exchange market is a global phenomenon, regulating this decentralised body with its $5 trillion worth is nearly impossible. Therefore, local regulatory bodies across the world have been set up to ensure an ethical & fraud-free experience.These local regulatory bodies set up rules and regulations for the brokers to follow. With periodic audits and inspections taking place the Forex Market is a safe place for investors to trade.
Trading in the Forex Market requires the right knowledge, skill and practice. This is your chance to become a funded trader and trade in real-time markets whilst learning the tips & tricks on the go.
With Phinaq’s varied course options your journey into the stock market has never been simpler.