Foreign currency exchange, also known as Forex, is the process of buying the currency of one country and sell it to make a profit.
There are certain similarities between Forex and the stock market. There are also differences. Forex has a much higher liquidity, meaning more money is changing hands daily. Another difference is that stocks are traded within a single country whereas Forex involves trading between banks and brokers all over the world 24/7. Consequently, Forex traders can expect higher profits. They can also lose more money as well if they've no experience.
The Forex word consists of two words foreign and exchange, FX or currency trading, is a decentralized global market where all the world's currencies trade. The forex market is the biggest, mainly liquid market in the world with an average daily trading amount exceeding trillion.
Learning to trade Forex can be confusing and complicated for a novice trader because there is a lot of terminology to learn. When you take a look at the symbols used in Forex trading, you'll see that they're composed of two parts. The symbol “usdjpy”. Represents the “US dollars”. The “Japanese yen”. It's important to learn what these currency symbols mean.
Besides learning the terminology, you also need to learn how to choose a broker. It's to your own benefit if you go with someone that offers low spreads. The spread is the difference between the price at which that currency can be purchased and the price it can be sold at any given time. Since Forex brokers don't get a commission from you, they'll make their money off the spreads.
South Africa's banking sector stands like a towering giant on
the African continent. The country's leading banks have also been
great innovators, for example, introducing the first ATMs that can read
thumbprints. However, as MOIN SIDDIQI reports, competition has
intensified with the influx of a large number of foreign banks.
South Africa enjoys a unique position among emerging markets because
of its first-world service industry in banking, insurance, capital
markets, and information technology. The country's banking strength
is reflected by its domination of the continent's banking assets
and capitalisation. About 80% of combined sub-Saharan bank assets and
72% of total capitalisation are concentrated in South Africa. South
Africa constitutes one-third of...
Also make sure that your broker has access to the most up-to-date research tools and data, meaning all charts, graphs, news and data are updated in real time. This will prevent inaccurate Forex forecasting due to inaccurate data.
Candy is a Forex Trader cum Internet Marketer, passionate about the returns of trading Forex. You can go funeasyforex.blogspot.com to get your FREE Forex ebook now.