Do you know about forex business/market ?Currency exchange market is also called forex market. Unlike others trading businesses, you don’t trade goods in forex market. This market has a simple business; purchase one currency with another currency. But it is not as simple as it looks. You have to be an expert to deal with this market. Profit comes very fast in this market but it vanishes even faster. Simply, forex is a profitable but risky business.
This is one of the leading businesses in the world; daily millions of trades are made in this market. It is a global business and trades are made 24 hours a day. This market works 5 days a week. This market is the only free trading business because it is not controlled by any control agency. This has made this market largest market in the world. Daily 1.5 trillion US dollars are traded in this market. This market is based on the free floating currencies. Before 1971, “Bretton Woods” agreement had stipulated all the currencies in accordance with US dollar backed by the gold price. After 971 due to Vietnam conflict this agreement was abandoned. Free floating currency concept was raised and this finally resulted in forex business. This free floating currency means that different countries have different currency rates and these rates can fluctuate depending upon the economic condition of the country.
Each currency fluctuates independently based on economy of respective country so one can make profit from change in the currency value. People still can’t realize that fluctuation in the currency rates can make profit for them. Another important point in the success of this business is that you can invest even a single dollar in this market. This market has no limitations and this has convinced more and more people to invest in this market. Forex is a global business and you can trade with any currency. Your selection of currency depends upon your market analysis and knowledge. Euro and US dollar are mostly traded in this market. They are known as “kings of currency” in the forex market. Some other currencies like Australian dollar, Canadian dollar, and Japanese yen and New Zealand dollar are also well reputed currencies in the forex market. Established forex traders use these currencies for most of the time. Forex currencies use abbreviations for these currencies instead of full name. Some of these abbreviations are;
USD for United States Dollar
EUR for Euro
CAD for Canadian Dollar
AUD for Australian Dollar
One will get used to these symbols soon after entering this business because these are everywhere in the forex market. They are logically developed from the name of the currency. Once you understood this system, you can determine these currency codes easily. Richest people of the world have invested most of their money in this market. They are earning billions per day from forex market. But this doesn’t mean that you can’t start with small amounts. You can make a good profit even with 100 US Dollars as first investment.