Forex Trading

Forex stands for Foreign Exchange. Unlike, Shares and bonds, Forex is not traded in a centralized platform like in a Stock exchange. Instead, Forex trading is done OTC(Over the Counter), which means that this is traded all through the day and in direct mode over telephones or the internet.

How does the Forex work? Every day, over $1 trillion of money is traded between different countries. Most of this is through genuine trade of export and import. And based on the trade between, say USA and the EU, the exchange rate between USD and the Euro fluctuates. So, effectively, if you have $100 when the exchange rate is One Dollar for Two Euros, and now you exchange it with Euros and thus get 200 Euros. Now if the exchange rate changes the next day to become $2 for every two Euros, now you can exchange it back to USD to make $200.

Ofcourse, the exchange rate seldom has such rapid fluctuations that you can double your $100, but that example would help you understand how the Forex trading is done.

Now, what is it that you need to do? Similar to virtual trading before investing in stocks, you also need to do your homework before starting to invest. Also, there are lot of sites on the internet, some of which you may find here in our own site which offers you virtual FOREX games. Playing virtually will get you to the intrinsics of Forex trading. You can start to invest in the actual trade while you know the basic fundamentals.

Now, I would also like you to invest some time in reading various tutorials. You need not necessarily pay for them. There are hundreds of free sites that offer you tutorials on how to analyze the exchange rates. Keep studying even if you are confident of putting your best foot forward. You never know when you learn something new or a new strategy that you never thought of.

So, all done where to register. Look into your local country Forex traders from Google or also from your local media and Financial advisors. It is important to choose the best trader because, they need to trade currencies that you think are your money getters. For example, you may feel that US Dollar trades best against Australian Dollar, but if your trader does not have that currency pair, you lose your strategy. So, make sure about the trading pairs that they offer, the commissions that they might demand, etc. Note that there exist institutions that do not demand any commission, but may offer poor services. So, you need to choose the best one for you. There cannot exist one best place which we can suggest.

Now, when you have started to trade, you need to remember one thing that you need to be really shrewd to understand how the Forex market moves. Keep tracking of the rise-fall trends and make your moves accordingly. Take the help of an expert, if needed. Keep learning and Happy Forex trading!