The Forex currency trading basics are discussed in this informative article. The word forex stands for foreign currency. Forex is basically the largest currency trading market of the world. Other abbreviations that are used for forex are Spot, FX and spot FX.
Trading of currency is done at Forex. It is a 24 hour trading market where the business is continuous. It never stops. The volume of business of this setup is almost more than $4 trillion that can never be equaled by any other trading market. Dealers or brokers do the currency trading in pairs. Like euros are paired with dollars.
The trading process at this market is a little complicated, as the commodity that is bought and sold is money and no physical thing. Forex is not located anywhere but electronically. All dealings are done among different people, banks, traders etc., electronically. It is basically an over the counter market and its work is based upon the strong network among the banks. It is an all-time market as it works the whole day and night.
When the market started, it was believed that only rich people could afford stepping in the huge sea of currency trading as the pre requisite was a high amount that was more than ten million bucks. It was assumed that only banks and other setups that deal with the finance sectors would be taking advantage of this market. But with the help of internet, it is possible for retail traders to access the market and participate in the currency exchange business.
A lot of many online forex firms are working now. One has to have a computer and internet connection to take advantage of the forex market. Three letter currency symbols are used in Forex. The first two letters are used to depict the name of the country while the last letters show the currency of the respective country.
Currencies are traded all the time at Forex. The Forex currency trading basics highlight fee free processes. There is no concept of day or night there; the only thing is it is an ongoing process at Forex. There are some gaps given at weekends but it is a continuous process. Spot currency trading is done at Forex. That means it deals with the current rates of currencies.
The Forex currency trading basics also include mini or micro trading. One can open an account with a small amount as well. There is now no need to have millions of bucks to have a forex account. The costs of making transactions are low and the online Forex firms provide the users with free market analysis, charts and news etc. So understand these Forex currency trading basics and open a Forex account with a low amount hundred dollars.
