What is forex?

Trinidad And Tobago
September 10, 2009 12:55pm CST
Hi everyone i was just wondering what is forex and is it a scam or not?
1 person likes this
4 responses
@tdemex (3545)
• United States
10 Sep 09
It's a legal form of gambling! You guess what money in another country is going to do in the future! You have a 50-50 chance of guessing right! Some people claim they have figured out how to forecast this by looking at the past, you can buy their programs for this and still loose money, but they are the real winners! tdemex
@tdemex (3545)
• United States
10 Sep 09
Hey Chris, thanks! But let me me give you a heads up here! You shouldn't give out the best response for at least 24hrs. and most people wait even longer! Other people are going to want to respond to your discussion and may not do that if the best response is all ready awarded! tdemex
@rajupaul (973)
• India
16 Sep 09
Dear tdemex About forex market I know that it is the vast subject. It is a good option to invest your money. Same time people are playing gambling on this market. Earning are there if you can study and invest.But not for gambling........
• Indonesia
13 Sep 09
Forex / Forex is a method of foreign currency exchange. because the currency is constantly changing every second,minute, hour or day,then we can take advantage of these changes. Buy (Purchase) We benefit if we predict that the currency exchange rate will continue to rise For example on Sunday, September 13, 2009 hour 09.00 rate GBP / USD = 2.0166 at 17:00 GBP / USD = 2.0381 then we will benefit = 2.0381 - 0.0105 = 2.0166 = 105 pips Sell (Sell) We benefit if we predict that the currency exchange rate will fall For example on Sunday, September 13, 2009 hour 09.00 rate USD / JPN = 119.59 , clock 15:00 GBP / USD = 118.32,then we will benefit = 119.59 - 118.32 = 1:27 = 127 pips Profit Calculation Each pips which means you get a percentage of profits that you get 105 pips = 105%, meaning if you buy GBP / USD worth Rp 100,000, - on the hour 09.00,then your afternoon at 17,000,your money will grow to Rp.205, 000
@Mge3dme (29)
• United States
13 Sep 09
Forex definitely is not a scam. However, it is very risky and many newbies will lose their money. Here is an article with more information about Forex from a well known source, http://www.bizcovering.com/investing/forex-trading-what-it-is-and-the-benefits/ . Forex can be hard to learn in the beginning but it is worth every minute. A trader just needs to find the right technique and not be greedy. Forex can be the most lucrative method of making money if it's done right. I suggest you find a broker and open a free demo account and trade for several weeks before ever trading with real money. Don't rush into anything.
• Australia
11 Sep 09
Forex is trading currencies. Just like the stock market, but with foreign currencies instead of shares in companies. It is a bit like gambling, but you can make informed choices about which currency you want to buy or sell based on a combination of keeping up with the news so you know anything important that's likely to affect currency behaviour (eg the us dollar is expected to rise this week because of such and such an announcement) and also learning to read currency graphs (eg, a red upside down t-shape is 'the gravestone' and means the currency's value is likely to begin falling). There are plenty of good sites that teach you this stuff and don't charge. Forex trading originally started out only available to big traders like banks and stuff, but now individual people can trade forex by using a dealer. There are tons and tons or forex dealers you can use, and a lot of them are scams and/or ripoffs, same with any other way of making money online. All forex dealers i've seen offer a free practice trading account, where you have an account with pretend money in it, so you can practice trading without risking your money. Experienced forex traders all recommend using practice accounts for at least a few months before investing real money. This is where i'm up to! When i first started, i managed to lose $50,000 fake money in about 2 days haha. It's really important to research the forex dealer- most of them are trying to rip people off somewhere, by doing stuff like asking for large minimum deposits to start real trading, pretending their servers are laggy so your transactions don't go through when you want them to and lose you money, having really large spreads which mean the currency has to go much higher or much lower in order for you to make a profit. That kind of thing. When i eventually start investing real money, i think i'll probably use oanda, I've heard the most good stuff about them than any other dealer and their spreads are usually pretty low.