What is forex? Why trade forex?
The foreign exchange market – or forex for short – is the buying and selling of currencies, and it’s one of the fastest growing markets in the world. From 2007 to 2010, forex market activity increased by 20%, with average daily turnover reaching nearly $4 trillion in April of 2010.
Forex trading works much like it does with stocks, you buy low and you sell high. The benefit of trading forex is that you don’t have to choose from thousands of companies or sectors. Plus, you can make things even simpler than choosing which company to buy.
For example, most people, even those that are new to forex, have an opinion on the US dollar and the US economy. They can easily take their opinions and translate them into a forex trade. Buying or selling US Dollars as simple as they buying or selling a company’s stock.
Also, another advantage of the FX market is that it doesn’t begin at 9AM and end at 4PM. Trading takes place 24 hours a day, 5 days a week. For most people 24 hour trading means they can trade before or after work. Plus, you have the flexibility to make your trades online.
Plus, you can buy and sell at any time, in up trends (also called bull markets) and in down trends (also called bear markets).
It’s easy to get started. You can sign up for a free practice demo account to practice trading online.
The time to trade forex is now. Join the millions of traders around the world.
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---Written by Jeremy Wagner, Lead Trading Instructor, DailyFX Education
Follow me on Twitter at @JWagnerFXTrader.