WHAT IS FOREX?

money-currency-forex

Often referred to as FX, Foreign Exchange is the market where global currencies trade. It is considered the largest and most liquid market with daily trading volumes in excess of 5.1 trillion dollars and is traded 24 hours a day, 5 days a week.

FX trading is unique in that there is no centralized exchange for transactions. Currencies are traded over the counter, which simply means pricing comes directly from market participants. This type of marketplace creates a currency’s value based on a number of factors; supply and demand, interest rates, technical positioning, the economic conditions of a specific country, news and other global events.

Brokers offer clients margin trading in order to facilitate currency transactions. Many brokers offer multiple margin options which will determine what percentage of your equity you will be using for trade placement. This allows clients to hold a position that is of greater value than the equity in their account

Risk management is an essential part of Forex trading. WorldWideMarkets offers various orders types to help traders manage their risk. Trading in Forex involves various strategies, including fundamental analysis, technical analysis, and model trading. One should study the basics of Forex Trading and a good way to get familiar with the Forex market is by practicing on a demo account.

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FOREX VS. STOCKS

The foreign exchange market is the largest financial market in the world with a volume of over $5.1 trillion a day worldwide. Total forex trading volume is well over three times the total of the stocks and futures markets combined.

FOREX

  • NO commissions on trades
  • Open an account with $25
  • Trade in any direction of the market
  • Market is open 24 hours a day, five days a week
  • No capital requirements for leveraging trades.

STOCKS

  • Brokerages charge commissions on every trade
  • Many brokerages require at least $2,000 to open
  • Brokerages require high capital accounts to allow short trades
  • Market is open less than 7 hours Monday – Friday
  • Trader must meet strict margin requirements in order to leverage trades

Market-Cap-Graph

Investors trade currencies for profit. Most forex trading is speculative. Traders use fundamental analysis (assessing  economic statistics and performance combined with political developments) and technical analysis (studying the charted history of an instrument) to reach their trading decisions. Unlike other asset markets, in forex direction is unimportant. It is equally possible to profit from a short trade  (a currency losing value) as it is from a long trade (a currency gaining value).

TRADE WITH A LEADING FOREX PROVIDER

WORLDWIDEMARKETS IS PROUD TO OFFER RETAIL AND INSTITUTIONAL CLIENTS FOREX TRADING SERVICES. WE ARE TRUSTED AS ONE OF THE WORLD’S LEADING FOREX PROVIDERS WITH OVER 20+ YEARS OF FOREX TRADING EXPERIENCE.

Trade over 40 currency pairs and speculate on exchange rates from the world’s most popular economies. Our clients benefit from our premium-level trading platforms, services, professional charting packages and more. WorldWideMarkets has established regulatory hubs in both Europe and the Americas. WWM is regulated by the FCA and segregate client funds to ensure the highest level of service.

 

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