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New to Forex The Forex market is a relatively new financial market. The basics of this market are simple and easy to learn. For those who are new to Forex it’s important to learn the market’s characteristics and unique attributes before starting to trade Forex online. Read this brief introduction to the world of Forex. Forex is all about buying and selling currency pairs. Traders join a broker to start trading with these pairs. Most Forex brokers offer an online trading platform. An online trading platform makes it easy to buy and sell pairs anytime of the day. The Forex market is always on the move, currency rates change constantly. Trading Forex could mean fast profits or fast losts. Brokers don’t charge commission for a trade. The broker’s compensation consist out of the difference between the buy and sell price, the so called ‘Spread’ The higher the spread, the more money for the broker. Therefore it’s important to work with a broker that offers low spreads. A low spread is your first win. Forex currencies are always quoted in pairs. Think of EUR/GPB, EUR/USD, USD/JPY. The first currency in a pair iis the base currency. If you buy USD/JPY, then you purchase dollars and sell Yen. This would be a good decission when you expect the dollar to grow against the Dollar. No physical delivery take place. For these purposes exchange companies and banks that are specialized in low-rate currency conversions opened their doors. Each transaction has two sides, (sell and a buy) Therefore it´s impossible to buy 100.000 EUR/GBP and exchange it for another EUR/JPY without closing the first position. Forex trading takes place 24 hours a day, 5 days a week. Trading never stops apart from a two days break during the weekend. Early closings are possible depending on calendar arrangement such as Christmas. Recent Articles :
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