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What is Forex Trading?
Forex Trading is trading currencies from different countries. This Forex is short for Foreign Exchange. An example of forex trading is buying Euro (European currency), while simultaneously selling USD (American currency), can be abbreviated EUR / USD.
In the shadow of the layman, forex trading is the activity of exchanging money in Money Changer, trading and buying foreign currency manually done through money changer. In fact, forex trading is different from manual transactions like in Money Changer. Generally, the purpose of someone to buy and sell money in Money Changer is because of the need to exchange currency to transact in a country.
While forex trading done done online with the aim of getting profit. Need to be understood, forex trading is a business activity, investment, even can be a profession. Online Forex trading with the purpose of gaining such benefits is done by broker forex broking.
The principle of online forex trading is basically the same as buying and selling money in Money Changer. The advantages of forex trading can be obtained from the difference between the purchase price and the selling price. For example, we buy $ 100 US Dollars when the Rupiah exchange rate against the Dollar is worth Rp13,250. Rupiah that we spend to get $ 100 is to Rp1, 235,000.
A week later, the US Dollar grew stronger until the exchange rate became Rp13,300. A trader will sell $ 100 he has with exchange rates this week. So he can profit Rp50,000, because the person who wants to buy his $ 100 must issue Rupiah as much as Rp1, 300,000.
Well, online forex trading business does it all not physically. They transact in cyberspace through a container called software or trading platform.
Forex Market
In contrast to traditional markets. Because here being traded is the currency, then the market (where traders / market participants make a sale) is called the forex market. Who are the forex market participants? very diverse: can be multinational banks, big companies, countries, institutions, speculators, etc.
Given the global scope and culprit, this forex market becomes very attractive and profitable. Why? So global, the forex market is the biggest money market ($ 4 Trillion / Day), and it is very liquid (can sell and buy at any market price). The forex market is also open 24 hours non stop due to world time difference. So, we can trade anytime according to our free time.
