Forex Investment Made Simple - What is Forex? - Maverick Investment Series

Forex is the largest trading platform in the world with about $ 4 (4) billion a day. It is a high risk investment market, but it can be mastered through proper education, accurate advice and little experience.

The foreign exchange market (Forex, FX or foreign exchange market) is a form of exchange for decentralized global trade in international currencies.

Surprisingly, after presenting it as a high-risk investment platform, it can be a very safe investment vehicle if you have access to internal information. We define privileged information as “looking over the shoulder of Forex investors who have verifiable success rates that produce high incomes. But let's explain some of the basics of investing in Forex, and let's explain their advantages and disadvantages.

WHAT IS THE FOREX MARKET?

It is the trading platform that allows investors to exchange currencies from one country to another. For example, if the US dollar is high and the Australian dollar is at a low level, you may want to exchange USD (US dollars) for Australian dollars.

He would make this exchange in the hope that the value of the Australian currency would increase. It reduces the exchange rate difference (called "spread") between USD and AUD (Australian dollar). If the USD was valued at $ 1.00, and for comparison, the AUD was valued at $ 0.80 in comparison, there would be a difference of $ 0.20.

If AUD increases its value to say $ 0.90 compared to USD (it is still valued at $ 1.00 here), you can make a profit of $ 0.10 for every dollar you trade if you close your trade now. That would be a profit of $ 100.00 for every $ 1,000 he invested.

In short, you buy a cheaper currency at a low interest rate with the hope that it will increase its value like any other product. If it goes up, you make a profit. If he goes down, he loses money.

The Forex market helps international trade and investment by allowing currency conversion.

Eg. Allowing a company in a country, Canada says, to import goods from Europe, especially members of the euro zone, and pay the euro, even if its currency is in Canadian currency (or in the buyer countries). It is also compatible with direct speculation in the value of currencies, speculation based on the interest rate differential between two currencies.

Some key tools you will need

You need a Forex account for your investment deposits that you would create with a broker. Usually, a small deposit of $ 100 or $ 200 is the initial amount for beginners, though you can invest as much as you want. In general, deposits increase as you gain experience and confidence in your investment capacity.

Create a free practice account

The smart approach to learning this means of investing is to create your own free practice account (or demo). You get issued "virtual" or fake money (like monopoly money) to invest. This allows you to learn, gain experience and decide when you are ready to start investing real money. All this is free.