about forex trading
September 10, 2007 8:21am CST
I have been reading a lot about this forex trading, but can anyone tell me exactly what is it? What do you have to do, is it something like buying and selling stocks? I have read that there are certain programms where u can ty for free first, to get the hang of it. Does anyone know where?
1 person likes this
• United States
10 Sep 07
Foreign exchange is the biggest trading market. It is highly leveraged which means you can risk a small amount of your own money and make a big sum but also lose a lot. It was only available to big banks and institutions until recently. It basically involves buying one currency and selling another based on your evaluation of which is more likely to increase in value. A currency gets stronger if the region's central bank is likely to increase the interest rate. Most currencies trade against the US Dollar. So for instance if you think the EUR will get stronger, then you can buy it and sell the USD. However, traders are forward-looking, so the market moves are not based on that assumption alone. If you'd like to learn more about forex trading, you can go to www.babypips.com. Most forex trading sites allow users to get used with their trading platforms with a demo account. Then, when you're ready to trade live, you can start with as little as $50.00 in some sites to trade a mini-account. I personally use www.oanda.com. It is not the most user-friendly trading platform, but it has one of the lowest commission fees.
12 Dec 07
Forex trading is currency exchange. I am trying to learn to trade.I want to do this as I have my owen investment company where I use other traders.so I am like a broker./A very easy to understand site is Babypips.com..It has really helped me to understand the basics of forex trading. Now I just study an hour a day, then when I am ready I will trade with a fake money on a trading platform until I am confident enough to trade live money. Hope this helps.