As the forex trading popularizes all over the world, we need to understand what is forex and how dealing and investing in it can help you, it is based on foreign currency and exchange it to change into a different currency. It has been emerging as one of the greatest trading markets with an average of 5 trillion USD in everyday trading transactions.
The market operates 24 hours a day and 5 days of the week and closes for 2 days. The forex markets is always active as all the trading is done through computers between the traders through trade platforms around the same time, this causes the market to be never closed and fully functioning 24 hours a day as there is some market active at all times for trading the forex. Forex brokers are the middlemen who provide the trade services and have access to the platforms that allow the sales of foreign currencies. Forex traders mostly choose in what pairs they want to trade in as the trading takes place in pairs of currencies such as EUR/USD which is the most popular one. Forex traders make their cut from the trades you do and they take a spread of whatever the trade amount is and the spread depends on the trader as to what they keep their spread.
Some traders work on commissions and they take a percent of your trade irrespective of the profit or loss, these traders are the ones that should be avoided as they do not have the best interest for you and could rip you off. These are some basic things you should know before getting into forex trading.
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