What is Forex?
FOREX market is an international inter-bank foreign exchange market, includes an investment activity in which currencies are traded.
This abbreviation stands for Foreign Exchange Market and is translated from English as the global exchange market.
For a case, if you travel to another country and exchange tenge for local money, you have taken part in the Forex market.
By its nature, the Forex market is the largest and fastest-growing market globally, operating 24 hours a day.
Forex trading or currency trading is an investment activity in which currencies are traded, and money is made from changes in the exchange rate.
To carry out exchange operations, you need a unique program installed on your computer and the Internet.
Money is a commodity and payment in the Forex market, but technically it does not physically reach the trader.
Advantages of Forex Market and Forex Trading
- Here are some of the profits of choosing foreign exchange trading as an investment method.
When the investment is small
- You can start trading carefully with a hundred dollars, and you can change minimal amounts.
- A couple of hundred dollars can work pretty well.
The Forex market is very liquid
- Because the Forex market is so large and so depressingly active, transactions are completed in seconds and at the price that was currently in motion.
It is available anytime and anywhere
- All you need is an Internet connection and a computer to trade in the Forex market.
- Sometimes, a smartphone is enough since many trading platforms are available to one degree or another even through mobile applications.
- Thus, you can trade anytime, anywhere, even in the forest, if you have mobile Internet.Trading is open from Monday to Friday at any time.
Many trading instruments
- Although some currency pairs are the most common and move faster, there are many currency pairs.
- Therefore there are many different instruments to trade.
- No brokerage fees are probably the biggest plus over the stock market, as the stock market has very high brokerage fees.
- In the Forex market, all transaction value is allocated.
The best time to trade
- In Forex, timing is everything, so understanding the best times to trade Forex is an unimportant detail.
- We ensure previously taken a look at the best currency pairs to trade in a given time or period.
- There is a perfect and logical reason why crosses with the Japanese Yen will experience more volatility during the Asian session.
- It is because those are the hours people are most likely to need JPY. They were increasing trading activity as a result.
- The Asian period is a daily phenomenon, just like the European and American trading session.
- But, does the day as such influence the Forex market?
Deciding when to trade Forex
- There is no wrong or good time as such to trade Forex. But, different trading pairs, sessions, and days present various opportunities.
- So knowing when are the best intervals to trade Forex, be it by day of the week, a month of the year, or time of day, everything is relative.
- To help you conclude how your trading correlates over time, consider applying a trading session indicator to your MT4 terminal.
- It make sure you know when significant news events could shake up the market.
- Perceptive the best day of the week to trade Forex is vital from a time management perspective.
- So you don’t waste time trading on days where there are fewer trades and pips on the table.
The Finest day of the week to trade Forex.
- Most of the examples provided so far consider various events that could affect the significant currency pairs.
- In addition to various one-time and once-a-year events that take place from time to time, there are differences between how the market behaves on certain days of the week
Days on which you should not trade Forex
- There are some days where you have to distance yourself from trading specific pairs, things like vacations, significant news events, and specific cultural and particular occasions.
Periods to trade Forex
- The periods in which two market sessions overlap are usually quite useful to trade.
- These are also when significant news related events make themselves known and can potentially cause high volatility and large directional movements.
- It is essential that the trader has these periods marked on the price chart and is aware of any important news that is going to be published.
- The European session (London) is usually the most active among all the sessions of the Forex market. The American session can also be quite busy, although not as active.
- The days in the middle of the week tend to show the most movement, as the range of motion in pips increases in most major currency pairs.
How to manage the Forex schedule properly?
- Since the Forex market works 24 hours a day, a trader can’t trade in all market sessions unless he never sleeps, which no human being can do.
- Also, even if it could do it, it would not make much sense.
- As in all markets, the Forex presents high activity and good trading opportunities only during specific periods, while the rest of the time, there is not much action to say.
- Not only that, sleeping well is an integral part of a good lifestyle.
- A person who wants to become a profitable trader must learn to rest so that his mind and state remain in good shape.
- Every trader must learn when to trade to improve his chances and when he MUST NOT trade.
- Although many beginner traders ignore this fact, it is a fundamental aspect of becoming a profitable trader.
- That is why you must learn the Forex schedule in detail.
Also Read: Email Necessity – Email Marketing Remains Essential in 2020
Also, You can find more helpful resources at Mashable Online.
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Review Forex – Advantages, Best Times to Trade ,How to manage the schedule.