For those who ask what Forex is, it’s an abbreviation of foreign currency, a concept that means “currency exchange” in Spanish, and if you still don’t know what I’m talking about, it’s no more or less a large market and with more liquidity around the world, reaching a daily trading volume of about $4 trillion!
And since I know that this amount is difficult to process, for comparison, the New York Stock Exchange, which is the largest stock market in the world, takes about 30 days to move the amount of money that I am talking about, that is, the amount that Forex moves in one day … Incredible, isn’t it?
But what is Forex and how does Forex work?
Forex doesn’t have a physical place to trade, but it works 24 hours a day, 5 days a week, without any time limitations, through virtual financial procedures, which are carried out from anywhere in the world and from which people want to buy money, paying with money… Yes, you have heard correctly.
This is because there are several currencies on earth, and each of them has a different value, what we will call a currency, so to explain what Forex is and how the currency market works, I explain it simply, as I would put it literally in a penny. What we do, and the people who are also dedicated to what Forex is, is to buy the currency of one country by paying with the currency of another. Simple!
As you can see when we talk about buying and selling currencies, we always trade with two different currencies, so when working in the Forex market there will always be pairs, the most common of which are the Euro-Dollar pair, the Pound-Dollar pair and the Dollar-Yen pair, managing a different currency for each of them.
This exchange price depends on the fundamental factor of supply and demand, that is, the more people buy a currency, the higher will be the value of this currency, and vice versa, if many people start selling a certain type of currency, the lower will be the value of this currency, so the price of the currency can change even daily.
That’s why the key factor in what Forex is is the ability to predict the behavior of currencies and thus know when the value of a currency will rise or fall to buy and sell at the right time so that we can multiply our capital. This is how the Forex market works!
It is not a coincidence that in order to move correctly in the Forex market, it is necessary to learn to analyze the market, either from statistical charts or from financial news, global macroeconomic policy and gradually learn to be a trader, ie to manage the art of how the Forex market works and what is Forex professionally.
It’s not a gambling game. It’s a profession!
And this is also not a magic business, trading, like any other field in which you work, takes time, at least as long as you learn how to invest your money in the investment market, a market that is undoubtedly worth leaving the fear and risk… Because it is these risks that come after great opportunities!
However, if you prefer, you can use different signal providers, who are mainly people or systems with a certain degree of experience in identifying opportunities with the greatest likelihood of success in the foreign exchange market, thus having a reliable ally to run your business……
However, before making such a decision, study the situation very well and make sure that the person you are going to trust not only your money, but also your time, is really a person with proven results, not just another Internet artist.