Forex, better known to the common man as foreign exchange, is one of the largest and most liquid financial markets in the world. It is all about trading currencies in the foreign market- a simple deal where in you buy low and sell high. According to the Triennial Central Bank Survey of the BIS (Bank of International Settlements), forex trading has an average turnover of a whopping $1.88 trillion daily. Now that’s quite an attractive figure!
Compared to the markets, forex trading has several benefits regarding primarily the money involved, liquidity, 24 hours of trading hours and so on. At the time when it was started, forex trading was limited to large banks, multinational companies and large currency dealers. But now with the rapid advances in technology, this scenario has completely changed and has now been made available to small traders and business people.
Forex has indeed become very popular these days and offers the best way to make money at home, provided the facilities like high speed internet connection, a funded forex account and trading system are made available.
However, a major drawback is the amount of money which is at stake. There have been instances where people became millionaires overnight. These are the lucky ones because there are others who have become bankrupt too. To avoid such risks, it is always advised that the beginners have adequate knowledge regarding the trade.
This is easily made available through various internet websites which offer dummy accounts so that the dealers don’t lose money, at the same time enable them to learn the trade. Yet another way is to follow forex charts to assist in trades. They are nothing but visual representations of the various currency values in the market and it is on the basis of these charts that a trader makes the decision whether to buy or sell currencies.