More and more is being said about the FOREX market. According to some, it is a great place to multiply your savings, for others the way to quickly lose the invested funds? Where is the truth? Probably somewhere in the middle. Some of the FOREX market is making money, so others have to lose. The risk is high, but also the possibility of earning unlimited.
At the beginning, let’s say what the FOREX market is . Well, it is an international stock exchange on which you can buy and sell virtually all world currencies. It is commonly said that it is the largest stock exchange in the world where daily turnover exceeds US $ 5 trillion. Its name comes from English and is an abbreviation of Foreign Exchange Market. In other words, FOREX is an exchange where one currency is exchanged for another. Transactions are carried out quickly, in an easy and clear manner, and what is equally important, they are performed without the supervision of the stock exchange. This market operates 24 hours a day, from Monday to Friday.
Who can make money on the FOREX market? Virtually everyone. Of course, we must have enough cash to buy some amount of currency, which we will later trade. The principle here is simple. To earn, we have to buy the currency cheaper than sell it later. Then we will spend, for example, PLN 1,000, and after the transaction we will have, for example, PLN 1,100. At first glance, it looks like it is a simple matter, but in reality it is not so easy. We never know how individual currencies will behave, so we never quite know when the time is right for selling our currencies. And that’s why a large part of the FOREX exchange participants loses their invested funds.
However, let’s go back to the FOREX exchange. It is said that FOREX never sleeps. And even when we have a weekend and no trade, things are happening all the time that affect the value of individual currencies. Political and economic events, and even weather anomalies can make the value of currencies after opening the stock exchange on Monday morning different than on Friday when the stock exchange closes.
Who trades in the FOREX market? There is practically an unlimited number of entities here. We deal here with transactions made by large banks, investment funds, and, on the other hand, with natural persons whose resources have nothing to do with the funds available to huge financial institutions. And this is the most interesting on the FOREX market – everyone can invest here , regardless of the portfolio’s wealth or experience.
Finally, let’s remind you again. The FOREX market is a huge risk investment. Therefore, before we register with a broker and start trading on it, let’s think carefully whether we accept the fact that we can lose our money. If not, let us give this way of investment better and look for a more secure investment instrument.