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Forex Market, What is Forex Market?

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forex market

Foreign exchange known as Forex or FX is a financial market that provides the opportunity to trade worldwide. Forex market offers many differentinvestment opportunities, especially foreign currency. Forex trading allows the excange of values of the currencies of decentralized spot countries. One of the most important features of Forex is a financial market with leverage system.

forex market

Forex facilitates international trading by offering all users the ability to exchange one curreny with another.

The most traders on Forex fact market are central are central banks, exchange rate speculators, institutional and small investors. Forex is very sencitive to political and economic developments and has a high volatility by its structure. It can react to such developments with very high price mobility instantly. Therefore those who know how to trade with Forex dollars will be more accurate to trade on Forex trading. Especially, it will be true for investors who can tolerate major price changes to trade in this market.

Forex Market Products

Forex includes spot silver and gold trading as well as currencies. In theory, it is possible to trade silver and gold in all types of currencies, but in practice the variety of products may very between institutions.

The Most Traded Currencies in The Forex Trading

SYMBOL COUNTRY CURRENCY NICK NAME
USD USA USD Dollar Buck
EUR Euro Countries Euro Fiber
JPY Japan Japan Yen Yen
GBP England British Pound Cable
CHF Switzerland Swiss Frank Swissy
CAD Canada Canadian Dollar Loonie
AUD Australia Australian Dollar Aussie
NZD Nev Zeland New Zeland Dollar Kiwi

Forex Market Advantages

forex factory
  • High Liquidity: Forex Factory is almost the most liquid market in the world with a daily trading capacity of $ 6 trillion. Due to this processing capacity, the possibility of manipulation and speculation is pretty low.
  • Leverage: While trading, you can trade more than the deposit you pay.
  • Variety of Orders: Due to some variety of orders, you may minimize your loss or set your profit.
  • Easy Access: If you have internet connection, you can trade 7/24 with gold and other trading.
  • Two-Way Operation Capability: You can earn not only when the prices rise, but also when they fall. Forex rates gives the opportunity to make money in both ways.
  • Low Processing Costs: Since it has a very high liquidity, the purchase and sale price difference is small and the costs such as additional fees or commissions are very small.

Risk of Forex Factory

  • High Volatility: Forex is very sensitive to political and economic developments and has a high volatility. It can react to these developments with very high price mobility instantly. So, those who don’t know Forex market well, should be very careful.
  • Using Leverage Excessively: Frequent use of investment in high amounts with very low guarantees may result in serious losses.
  • Currency Risk: Turkish Lira may decrease in foreign currency transactions due to exchange rate risk.
  • Long Trading Hours: It may be traded in Forex market during 24 hours on weekdays.
forex market

Fluctuations can occur at any time and there for requires continuous monitoring ıt takes much of your time.

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