Humans have had desire to grow their wealth and assets since ancient times, therefore, according to the conditions and the level of risk-taking, everyone engages in transactions in different markets with the aim of growing their wealth.
Trading markets have undergone many changes from the past until now, some of them have lost their fans over time and have been forgotten, while others have remained stable and active until now.
The topic of our paper today is to introduce one of the largest trading markets, the forex market, which has not only been going strong for years, but also attracts more and more enthusiasts with the passage of time. Stay with us to learn more about this popular market.
What is forex?
Forex, also known by some as FX, is derived from the term “Foreign Exchange” which means foreign trading. That is the best way to reach to the global currency markets.
It is interesting to know that the history of the first forex markets dates back to 500 years ago in the Netherlands, where the possibility of freely trading currencies in Amsterdam helped to stabilize the price of the exchange rate.
As far as the forex market is active 24 hours a day, 7 days a week, and there is no activity restrictions for users, it can be called the most popular trading market in the world.
But what is the forex market? We will answer this question below.
What is the forex market?
The forex market is a global and decentralized market for the trading of different currencies. In fact this market is the largest and most liquid market in the world, with 5 trillion transactions from all over the world taking place in this market every day.
To give you a better view, we must say that, the total value of the global stock market is not even close to the value of the forex market.
The forex market is a great opportunity for those who want to make money and grow their wealth, because there are thousands of opportunities to make money at any given time in this market.
But what is the advantages of the forex market for global economy? In the following lines we will refer to the most important ones:
- The forex market allows individuals, banks and funds to buy and sell currencies in order to trade or keep them
- Since this market is active 24 hours a day, it creates a turnover of trillions of dollars on a daily basis
- The forex market allows the enthusiasts to invest small amounts
- This market can make hundreds of jobs opportunities and lucrative income
As it is decentralized, the forex market services are provided to traders in different platforms, which are called brokers or dealers.
Forex broker will show exchange rates relative to each other, or simply in a brokerage we can find out the value of one currency against another.
Innumerable brokers have a place around the world to provide forex trading market services, there are Iranian and Persian brokerages among them, which are different from each other according to the facilities and services that provide.
It is better to be very careful in choosing a right broker, Zenita Finance broker with a professional team and experienced specialists, offering up-to-date and diverse services, with high security and proper support, is the best one among Persian brokers for doing transactions in the forex market.
Forex trading is the exchange of different currencies in global centralized market, these transactions include simultaneous buying and selling of foreign currencies in the forex market.
The aim of forex trading is to predict if the value of one currency will increase or decrease relative to another in the near or far future.
Forex trading also helps to sell products and services of different countries to the rest of the world, by providing services and products through trading in the forex market a country can receive the currency of different country and then exchange it to the currency of its own country.
Forex trading is always taking place through currency pairs, which we will explain below.
Forex traders use the Forex market to buy, sell and to convert one currency into another instead of exchanging and trading goods and different currencies.
Currency pairs in forex
Currency pairs are particularly for forex trading and indicate the value of one currency to another, for example EUR/USD is a currency pair that represents the ratio of a dollar to a euro.
Currency pairs are separating to two codes base currency (is the first currency stated in a currency pair) and quote currency (is the second currency stated in a currency pair).
The quotation of a currency pair expresses that how much of the quote currency is needed to buy one unit of the base currency.
Using calculations, instruments, economics and world news, forex traders can identify different trading opportunities and use them to trade in the market.
Forex traders anticipate changes in currency prices and after determining proper positions for trading currency pairs, they earn money from price change.
In addition to managing their own trades, some forex traders also trade in the forex market for organizations or work as client’s representative.
To earn money from forex, they should have access to market data and information and they can execute trades by using a mixture of quantitative and qualitative analysis.
To become a professional forex trader, you can take an academic course or you can be a forex master trader over time through research, training, practice and trial and error.
The final word
Generally speaking a trading market is a good place to invest and earn money. which market is more reliable? It depends on different factors.
General knowledge for this question is that forex is undoubtedly one of the best! Because over the years, the period of economic recessions and various challenges in this market are in force and the number of users are growing daily.
Moreover, the opportunities for capital growth in forex are countless and anyone can make a good income in the forex market over time by studying, practicing and using different services, therefore, from the past to today, forex was and still is one of the best investment options.
To enter the forex market you can start with a portion of your capital and when you get the experience, put more money to make more income.
Zenita Finance is one of the best for safe and fastest forex trading, you can become a professional trader after registering and depositing into the trading account, with the help of the services and trading platforms it provides.