What is Forex Trading

Foreign Exchange or known as forex is one of the options that very popular investment at this time. Forex Trading is a transaction value of trade exchange foreign currency in the international money market. Forex market is the largest money market in the world.

The transaction in the forex market are: the governments in the world, the main banks in the world, international companies , Hedge funds, foreign exchange speculator and individuals. With so many players in the forex market is causing a rotation of money very quickly. Transactions that occurred more than 1.9 trillion U.S. dollars every day making money can move from one place to another in only a few seconds.

Like the stock market players can do forex trading companies using the service broker or do it online via the internet.

Forex market movements began to revolve from the New Zealand market and Australia is in progress at 05.00-14.00 WIB, continue to Asian markets, namely Japan, Singapore and Hong Kong, which took place at 07.00-16.00 WIB, to the European market that is Germany & UK, which took place at 13.00-22.00 WIB, to the United States market, which took place at 20.30-10.30 WIB. In the development history, the central bank owned by the countries with reserves of foreign currency that even the biggest can be defeated by the strength of the forex market survey .According to BIS (Bank International for Settlement), which was conducted at the end of 2004, the market value of the transaction forex reaches more than USD $ 1.4 trillion per day. Thus, the prospects of investment in forex trading is very good.

Given the level of liquidity and accelerating the movement of the high prices, the FOREX has also become the most popular alternative because the ROI (Return On Investment, or the value of the investment return that we have been planting) and the profit that can be obtained exceeds the average trade in general (usually average average return of more than 5% - 10% per month, can even reach more than 100% per month for professional traders). As a result of the rapid movement, the FOREX also high risk if you do not have enough knowledge and settings with good financial management.

Trade forex has several advantages compared with the trade financial products such as stock trading, namely:

24 Hours Trading

Can be done 24 hours a day, 5 days a week, whenever and wherever we are.

Liquidity

Very liquid with a number of broker / dealers who play in the forex market.

The low transaction cost

Brokerage commissions are relatively small, even for online trading through the Internet there are no transaction fees are charged only but the amount varied. In addition spread also small.

Potential benefits 2 direction (up or down)

Have potential benefits in both the currency and the stronger currency on the wane.

Margin Trading

Trade with the margin to make the investors exceeds the amount of capital owned.