What do you actually sell or buy on the forex market?
The short answer is nothing. The Forex market is purely a speculative market. No physical exchange of currencies has ever occurred. All trades exist only as computer entries and are filtered depending on market prices. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded in the merchant account.
The main reason the forex market exists is to facilitate the exchange of one currency to another. Of course for multinational companies that need to trade currencies continuously. For example, for payroll, payment for the cost of goods and services from foreign vendors, and activities of mergers and acquisitions.
The daily needs of companies are only around 20% of market volume. Fully 80% of trading on the currency market is speculative. Done by large financial institutions, hedge funds are billions of dollars. And even individuals who want to express their opinions about economic and geopolitical events at that time.
Because currencies always trade in pairs, when a trader trades he is always one currency long and the other short. For example, if a trader sells one standard lot (equivalent to 100,000 units) from EUR / USD, he will basically exchange euros for dollars and now it will be a short euro and a long dollar. To better understand this dynamic, let’s use a concrete example. If you go to an electronics store and buy a computer for $ 1,000, what will you do? You will exchange your dollars with a computer. You will basically be short of $ 1,000 and a length of 1 computer. The store will take $ 1,000 but now lacks one computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange occurs. While all transactions are just computer entries, the consequences are no less real.
Large Returns in Currency Trading
Opportunities for returns are unmatched. And also investment protection in the new world of investment, namely for attractive foreign currencies. In Foreign Currency Trading, financial executives Russell Wasendorf, Sr., and Russell Wasendorf, Jr., have explained. That foreign currency trading is in simple terms and helps you understand the risks, benefits and operational requirements. And that is needed to take advantage of this extraordinary market.
Potential of Forex Trading.
Look at Foreign Currency Trading for a clear explanation of the mechanism of foreign currency trading. In-depth discussion of all related foreign exchange rules and regulations. And also a comprehensive glossary with hundreds of important terms for forex trading. Previously there were restrictions on currency trading in a recent court decision. The world of foreign currency trading is an interesting and rapidly expanding field.
It’s time to start trading forex.
You can start trading forex on a PC by installing a platform first. You can choose Metatrader 4, and install the best indicators that can help you analyze the market.
One of the best forex signals at the moment is Forex Signal 30
By using the system of forex signal 30, you no longer need to speculate in forex trading. You can take a SELL and BUY position optimistically without the need to involve emotions. You simply follow the FS30 signal from your platform. Then immediately install ENTRY Sell or Buy. This forex trading system has been used by thousands of traders throughout the world since 2009. This system has survived for more than 10 years because this system really works well. Most forex signals can only last 1-2 years and disappear. Stop trial and error, protect your balance and immediately hunt profit from forex trading with forexsignal30.com