What is the forex market?

 

The forex market is the world’s most exciting and dynamic market. With $4 trillion traded
every day, it is also the largest financial market in the world.
Forex (or FX) stands for ‘foreign exchange’ hich a traveller will know as the currency
that you buy when visiting another country. For example, you may sell euros and buy
dollars for your trip to the USA. The online forex market is, however, 90% speculative,
which means that you don’t take possession of the actual, physical currency. Rather, you open
and close deals and make either a profit or loss which gets reflected in your online account.
The forex market is an over-the-counter (or OTC) market which means that trading takes
place directly between two parties without dealing through an exchange. This means you
can conveniently access the virtual market online anywhere in the world.

The forex market has several advantages over other types of trading, such as traditional stocks:
Unique features Liquidity. The high volumes traded globally
lead to high liquidity. The big advantage of liquidity is that you can always find demand
to sell or buy the currency pair you wish.
Increased leverage. Leverage is when you ‘borrow’ money so that you can use a small
investment to get a greater yield. Most stock markets offer 1:2 leverage. With forex, 1:100
and higher is common. This means your opportunities for gain are greatly enhanced.
Remember though that your risk increases too.

Increased opportunities. Forex market conditions can change at any time in
response to real-time events. While you must be aware of the risks such changing
markets can pose, remember that volatile markets also offer high profit opportunities.
Easy access. At easy-forex you can start trading forex with a low first deposit. You
can fund your account with a debit or credit card and start trading within minutes.
No commissions. easy-forex does not charge you a commission. Instead, as the
market maker, we make our money from the spread (i.e. the difference between the
buy and sell price), as well as any rolling fees if you have kept a trade open overnight.
Controllable risk. Forex traders set a stop loss which means you set the maximum
amount you are prepared to risk. At easy-forex we guarantee your stop loss on our platforms.

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