The largest single market in the world trading $2 trillion every day, the Foreign Exchange (FOREX) market is a worldwide decentralized financial market for trading currencies. Its primary purpose is to assist international trade and investment by allowing businesses to convert one currency to another-i.e., traders buy one currency with another at the current exchange rate. Today, more and more people are investing their finances in the FOREX market hoping to become FOREX Millionaires.
Barter exchange is one the major characteristics of the FOREX Market. That is, currencies are traded in pairs-or in laymen?s term, for anybody wanting to sell dollars to get British pound, there must be someone else wanting to sell the pound for the dollar at the same exchange rate. The FOREX Market is much simpler than the Stock Exchange Market as the former only involves 30 currency pairs compared to the latter?s universe of thousands of stock offerings. Also, only 6 among those 30 currency pairs account to 90% of the daily trading activity in the FOREX market. These currency pairs are the Euro vs. US Dollar, Japanese Yen vs. US Dollar, US Dollar vs. Swiss Franc, Australian Dollar vs. US Dollar, British Pound vs. US Dollar, and US Dollar vs. Canadian Dollar.
The Spot Market, the Futures Market, and the Forward Market are the three general types of the FOREX Market. The Spot Market accounts for one-third of all currency exchange. This market is characterized by quick immediate transactions where payments are made immediately at the current ?spot rate?. On the other hand, transactions involving future payments and delivery at an agreed ?future rates? are referred to as the Futures Market. Lastly, the Forward Market is also characterized by transactions involving future payments in the exception that the terms are negotiable between the two parties. As such, each participant is allowed to tailor the terms according to their needs. From these types of the FOREX market, traders may choose where to invest and become FOREX Millionaires.
But why should one invest in the FOREX Market? One of the many advantages of the FOREX Market is allowing traders to start with a small amount of capital, allowing anyone to enter the market with as little as $300 USD. Also, it is very liquid giving traders full control over their capital. The FOREX Market also does not charge traders any exchange fees, commissions, and payments, eliminating the need for a middleman between investments and the market; hence, making it more profitable for the trader. The FOREX Market is also available 24 hours through the online Foreign Currency Trading market, allowing traders to get updates on the currency investments anytime of the day.
However, can becoming a FOREX Millionaire really be accomplished? Expert traders would answer YES to this question. First of the many things to learn to becoming a FOREX Millionaire is learning how FOREX trading works. From these studies, one may decide how what role to play in the FOREX Market-i.e., whether to buy or sell currency. In this decision, one of the many characteristics traders should have is to ?think outside of the box?. Then, trading may begin. From there, proper money management-the practice of not leaving yourself exposed to wipe outs on the FOREX-is a must.
The FOREX Market is indeed a promising work area where one may earn money. Becoming FOREX Millionaires is indeed possible with the proper understanding of how the market works and making wise decision on currency trading.
Rochelle Navarette is a FOREX millionaire from Mexico. She started trading in the foreign exchange market with only $300 as her initial capital.
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