Forex – Foreign Exchange is no other than a currency exchange. In this place we can “meet” and trade currencies around the world. De facto currencies have been always exchanged. We are talking about a very long period as much since Biblical times. In the twentieth century, there was the flourishing of the investment nature of the market and in the twenty-first century it has become a popular term, all thanks to a global network that is the Internet.
In the case of currency market of Forex each of us can be an investor without leaving home. The only thing we need is regular access to the Internet. Forex enables us to exchange currencies. Each currency pairs are identified by three-letter abbreviations alloted by slash. The first currency is exchanged. For example, GBP / PLN in the amount of 4.5 means that for one British pound you have to pay 4.5 zloty. The selling price and the purchase price are always different from each other, because the brokers also need to earn.
The Forex market is almost always open 24 hours a day. The exception is in weekends. Considering the global nature of the market, the trade starts with the opening of trade in Australia at 8:00 on Monday that time, and it is closed in New York at 17:00 on Friday.
On the Forex market we can trade almost any currency in the world. Everything depends on the broker. The most popular in Europe are following currencies: Euro, US dollar, British pound, Japanese yen, Swiss franc, Australian dollar and New Zealand dollar.
Each of us can start investing on the stock exchange currency. Undoubtedly, before we get the profits we must read some basic facts. The most important rule is to invest in such way in order to avoid bankruptcy. First, you should familiarize yourself with some basic concepts, eg. what spread and leverage is and what is the difference between stock market and Forex and how to manage your portfolio. Then we have to choose your broker. Each has his faults, so be sure to read about them a little bit more on the Internet forums. In most cases, with the first deposit we can receive attractive bonus eg. in the form of additional cash. When setting up your account, we can even double our budget. The last step is effective investing. You should search a few strategies in the Internet and accurately determine which of them will bring us much cash. Over time, we cultivate our characteristic activities and we will not have to rely on the advice of others.