How to Trade Forex Currencies
The currency market, also known as Forex (Foreign Exchange) is the market that moves a greater volume of money in the world to date, and is equally popular among large corporations and among private investors.
In fact, more and more private investors have transactions in foreign currencies in their portfolios. Let’s see what are the main points to consider for exercising operational in this market.
Choose major currency pairs
Among the major currency, pairs are the following: EUR / USD (euro / U.S. dollar), GBP / USD (British pound / U.S. dollar), USD / JPY (U.S. dollar / Japanese yen), and USD / CAD (U.S. dollar / Canadian dollar).
Less popular are the minor currency pairs also called exotic: EUR / CHF (U.S. Dollar / Swiss Franc) and GBP / USD (British pound / dollar Singapore), among others.
For novice investors, it is advisable to choose a currency pair higher, since information on these is more extensive and accessible, thereby facilitating knowledge and training on these pairs.
The relationship between each currency pair is unique, yet complex, so it is important not to rush into transactions with this active and learn as much as possible about the chosen currency pair before operating.
Deciding how to enter the market
There are two ways to access the foreign exchange market:
1. By currency futures that is traded on the Chicago Mercantile Exchange (CME). This used to be the sole point of access for private and small investors.
2. By forex accounts operated outside, ie by cone products CFDs or contracts for Difference.
Choose a trading platform which should be effective and reliable.
Since the popularity has grown among investors by trading in forex, so has the number of foreign suppliers, which have boost considerably in the last decade.
It is important to choose a supplier with market stability, with good reputation and offers an efficient and stable platform.
The above article is just informational, and you must understand the risk involved with forex. Therefore, accepts the responsibility before trying any tips. CFDs are a leveraged product which carries a high level of risk and may result in losses that exceed your initial deposit. Make sure you fully understand the risk involve and make constant monitoring of your investment.
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