“Forex used to be a market that only 1% of the richest people in the world had access to. Now you have the same opportunity to access and learn the skillset for yourself.“
So you may be wondering, “What is Forex trading or the Foreign Exchange Market all about? I’ll be the first to admit, when someone first explained it to me, I didn’t understand. And then when they broken down in the simplest terms, it made much more sense. So I will attempt to explain it so that even a 10-year old will understand.
What is the Foreign Exchange Market?
First let me explain what the Foreign Exchange Market is. It is the largest financial market on the planet — weighing in at 6.35 TRILLION (with a “t”) a day in trade volume. In comparison, stock markets weigh in at $200 billion per day. which means that the Forex market is over 200 times larger than the New York Stock Exchange.
So How Does Forex Trading Work?
Let’s say you’re from the US and of course you are familiar with the US dollar. Now lets say you want to go and take a vacation to Europe and you bring $500 US dollars to spend in Europe on your vacation. Europe has their own currency called the Euro so you would need to transfer your $300 US money into Euro money in order to spend it. Now lets say you didn’t spend any of that Euro money and you want to exchange it back to the US dollar currency. You would either get more or less of the US dollar money. Why is that? It’s because there is fluctuation in the exchange rate. All transactions made on the Forex market involves the purchasing and selling of two currencies simultaneously. And this is the Forex market. We get to participate in the buying and selling of the currencies on a technological level.
Why Is Forex Trading So Popular Now?
Even though Forex trading has been around for a very long time, it has became increasingly popular within the past few years. One reason for the increase is because it’s so easily accessible. You can trade anywhere in the world as long as you have an internet connection.
Another reason is because it’s a low barrier to entry. With some brokers, you can open an account with as little as $20. In the past, you would need a substantial amount of money to get started. But in Forex, you have access to what is called leverage which means a broker provides you access to control a larger sum of money in the market than what you have in your account. As a result, this increases your chances of bigger profits.
Conclusion
And so as you can see, Forex isn’t going anywhere. It’s an evergreen industry because there will always be currency pairs. This is a skill that will last a lifetime. You can teach your kids, you can teach your parents, and you can teach your grandparents. I know people that are teaching their 17 year old the skill so they will be set for life. There are also forex scanners like Forex Trendy for example that is actually set up to provide you with good trades with push notifications that you can input a trade on the go.
Although it is a very profitable business, you need to have a clear understanding of how the market works, and there are equal chances of loss as there are chances of success. So let me tell you the Forex trading school I am a part of.
