Customer Service: Get 24/5 service when you need it, wherever you are. Forex Tutorial: What is Forex Trading? by now you should have a basic understanding of what the forex market is and how it works. All you really need, in terms of hardware to get started, is a computer or mobile device with access to the internet. The ultra-high leverage of the forex market means that huge gains can quickly turn to damaging losses and can wipe out the majority of your account in a matter of minutes. Furthermore, in a declining market, it is only with extreme ingenuity that an equities investor can make a profit. The more the Chinese currency devalues against the US dollar, the higher your profits. The forex market is open 24 hours a day, five days a week, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. Simply, forex is the market in which currencies, or money, are traded. Despite the foreign exchange risks, the amount of leverage available in the forex market is what makes it attractive for many speculators.
Furthermore, commissions in the equities market are much higher than in the forex market. Just like stocks, you can trade currency based on what you think its value is (or where it's headed). Open your free forex demo platform and trade your opinion. The majority of forex traders focus their efforts on seven different currency pairs: the four majors, which include (EUR/USD, USD/JPY, GBP/USD, USD/CHF and the three commodity pairs (USD/CAD, AUD/USD, NZD/USD). It just is not possible to find such low margin rates in the equities markets; most margin traders in the equities markets need at least 50 of the value of the investment available as margin, whereas forex traders need as little. These few pennies add up quickly. If you think a currency will increase in value, you can buy. Historically, the foreign exchange market was the domain of government, hedge funds and large companies with significant exposure to international markets. Higher leverage can be extremely risky, but because of round-the-clock trading and deep liquidity, foreign exchange brokers have been able to make high leverage an industry standard in order to make the movements meaningful for currency traders. With a US5-trillion-a-day market, the liquidity is so deep that liquidity providersthe big banks, basicallyallow you to trade with leverage.