as a new investor, you have a lot to learn. It is therefore not for nothing that it is asked not only to go to school, but also to do enough research on the internet. There are concepts you should never miss when you want to be successful. This is for example the case of forex which is a market that will be very useful to you.
You will therefore learn that this is a notion that should not be ignored at all when you want to make your investment successful. It will first be a question of knowing what it is really about and who are the actors. In addition to that, you will also have the opportunity to find out why you should not neglect this market at all.
Forex: what is it?
When we talk about forex we are indeed referring to the Foreign Exchange Market . It was from 1971 that this concept was born. To be more practical, forex is a market that takes place between several banks. Its main task is to enable the buying or selling of currencies globally and in the exceptional wake of the floating exchange rate. This rate obviously depends on supply and demand on the market.
It is also very important to know that forex is without doubt the largest financial market you can find in the world. He never closes. This therefore implies that you can make your various transactions 24 hours a day. Whatever currency you are interested in, you will have no problem. You will still benefit from knowing that the most taken into account here are the dollar, the pound sterling, the Japanese yen and the euro.
Who are the forex players?
As in any market, there are players who interact in the wake of forex. Here are some of the main drivers of this market:
- Banks and financial institutions;
- Speculative institutional investors and hedge funds;
- Individual investors;
- Central banks.
Why is forex important?
When it is said like that, you definitely cannot know why it is advisable to trust this market and master it. But after reading what will follow, you will understand everything. Indeed, there are several reasons that should appeal to you in forex.
The first advantage of this market is that it offers you the opportunity to intervene at any time. So there will be no restrictions, as the market is open at all times and at all times. So you don’t need to worry about anything or pretend you don’t have time.
Then, forex is very good news for traders with strong experience. Indeed, this market is endowed with a very important leverage effect. This is what makes it possible to succeed in trading. By mastering this market, you will find that you are making incredible gains.
On the other hand, you will benefit from knowing that one of the advantages of FX is that it does not offer a very wide variety of currencies. Which is therefore very useful in the sense that the exchanges will be much easier and more fluid. You don’t have a lot of work as can be seen in the context of the equity markets.
Another very interesting thing about this market is that the various financial intermediaries here will not necessarily subject you to commissions on your various transactions. There is no doubt about this! The FX market is much more expensive than the stock market.
In short, you can reduce yourself to knowing now what we are talking about when we talk about forex or FX. It is a market that you will also benefit from mastering, especially if you want to do trading. It is not at all difficult to master, but the most important thing for you will be to have all the useful information so as not to make mistakes.
You will also benefit from knowing that it is much more beneficial than the stock market in terms of cost. It is therefore a path that you should definitely try as a new investor.