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What are Currencies?

Currencies pairs or Forex is short for foreign exchange, which quite simply refers to the conversion of one currency into another. It is also used to describe the world’s decentralized global currency market, where all the currencies are being traded. The global forex market is massive, reaching volumes of nearly 5.5 trillion dollars on a daily basis. The forex market is also highly volatile, with currencies giving and gaining ground in just seconds.

National currencies are extremely responsive to financial events and political and economic decisions, as well as other news events. The value of a currency can rise or fall dramatically – and sometimes without warning – creating significant opportunities for forex traders.

Just like stocks, you can trade on currencies based on what you think their value is or to what direction you think they are headed. If you think that a currency will increase in value, you can buy it, and if you think it will decrease, you can sell it. With a market of that size and volume, finding a buyer when you are selling and a seller when you are buying is much easier than with any other market.

The forex market operates 24/5 and covers dozens of different currencies. forex traders can open leveraged positions on the relative performance of a very-wide selection of currency pairs. At no time you actually buying or owning any physical currencies. You are simply investing on the difference between the opening price and the closing price of your position.

What causes the exchange rates to fluctuate?

The responsibility for the value of a any national currency rests on the economic health of the country that issued it and on certain decisions taken by the central bank and government of that nation state. Believe it or not, what these countries actually do is trade forex in order to control the supply of currency in their respected economy.

Unless there is a parallel increase in supply for the currency, the disparity between the supply and demand will cause the price to increase. Similarly, a piece of negative news can cause an investment to decrease, and in turn lowering a currency’s price.

These decisions create significant trading opportunities on a regular basis. Not surprisingly, the forex market is dominated by major institutional investors and funds, but traders can also profit from this highly volatile market by trading forex on our award-winning platform.

For example:

What are the main advantages of trading FX with forex trading is enjoyable, quick, secured and convenient. Even though there are many reasons as to why someone might want or need to participate in the forex market, our competitive fixed spreads help to reduce the cost of investing to a minimum while allowing you to fully understand the overall investment process.

It is also commission free and we don’t take any hidden charges or fees from you throughout your trading experience.

Who can trade FX?

Needless to say, anyone who is looking to get involved in buying and selling currencies online can trade FX. Forex trading is considered as one of the most active and dynamic ways to trade the financial markets and at the center of it is the basic principle of fluctuations in currency values which drives everything else.

Thanks to intuitive platform, it is very convenient to take part in this type of derivative trading and there is no need for any previous knowledge or experience in order to get started.


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