GENERAL INFORMATION
Forex ( Foreign Exchange, also known as FX ) is the market place for the trade of currencies. For a long time only institutional traders (i.e. companies that wanted to control their currency risks with international businesses on the market) were entitled to trade, but by now, online trading companies and special Forex-Platforms allow everyone to participate. The Forex Market is the biggest financial market of the world and exceeds with a daily trading volume of several trillion euros stock markets such as New York Stock Exchange or Frankfurter Börse by a far.
Currency pairs
The currencies that are traded the most are US-Dollar, Euro, Yen, British Pounds and Swiss Francs, because these countries represent the strongest economic areas. Nevertheless, exotic currencies like South African Rand are tradeable against Euro or US-Dollar. Therefore we can say that in trading the value of one currency is pictured equivalent to a foreign currency. If there is a transaction, one currency is sold while the equivalent amount in the other currency is bought. Just as you might sell your money every week to buy milk for it.
WHAT IS SPECIAL ABOUT THAT?
Probably the strongest argument for the Forex Trade is the possibility to leverage your position. This means you can move a position 10.000 currency units with a trading account of 1000 US-Dollars using only 100 USD at a leverage of e.g. 100:1 and therefore participate exponentially in the development of the market. A price change of Euro/Dollar of 30 points (also known as Pips) would bring you profit/loss of 30 US-Dollars, which equals a change of 3% of your whole trading account.
Since there is no central exchange such as the "Frankfurter Börse" for currencies FX is known as an OTC market (Over the counter) you are not bound to opening hours during weekdays at your trading. At any time you will find a counter party in this liquid market to liquidate your positions close to the market price.
Because of low minimum deposits with most Forex Brokers (as low as a few hundred Dollars) Forex Trading enjoys great popularity. Low fees allow entrance to beginners in the role of daytraders to this markets.
WHAT DO I HAVE TO CONSIDER?
The supposedly biggest problem people who want to trade professionally have to face is the sheer flood of information. There is no wrong or right and many don't know where to start. Scammers like to take advantage of this situation by selling trading systems that seem to promise astronomic profits. The majority of private traders spend years on looking for the perfect trading system with which you can't loose or looses money to strange signal sellers who guarantee effortless monthly profits. This is mainly a problem due to deficient knowledge.
WHAT CAN I DO?
We, the team of Forex-Ausbilder.de, have made it our goal to spare beginners these dangers. By putting realistic expectations and experience gained over years across we want to educate our customers to knowledgable traders. Let us guide you on the way to your goal!
Take your time and learn about we have to offer you.