A global decentralized financial market for trading currencies, the Foreign Exchange (FOREX) market is the largest single market in the world trading $2 trillion every day. To assist international trade and investment by allowing businesses to convert one currency to another is the primary purpose of the FOREX Market. That is, in the FOREX market, traders buy one currency with another at the current exchange rate. Today, hoping to become FOREX Millionaires, more and more people are investing their finances in the FOREX Market.
Currencies traded in pairs is one of the major characteristics of the FOREX Market. It involves barter exchange where for anybody wanting to sell dollars to get British pound, there must be someone else wanting to sell the pound for the dollar the same exchange rate. The FOREX market only involves 30 currencies making it much simpler than the Stocks Exchange Market which usually involves a universe of thousands of stocks offerings. Moreover, from these 30 currency pairs, only the pairs Euro vs. US Dollar, Japanese Yen vs. US Dollar, US Dollar vs. Swiss Franc, Australian Dollar vs. US Dollar, British Pound vs. US Dollar, and US Dollar vs. Canadian Dollar account for 90% of the daily trading activity in the FOREX market.
There are three general types of the FOREX Market. First among these three is the Spot Market which involves the quickest transactions involving currency. In this market, payments are made immediately based from the current spot rate. Another type of FOREX Market is the Futures market where transactions involve future payments and delivery. These transactions are based at an agreed future rate. Finally are Forward Markets which have characteristics similar to the Futures Market except that its terms are negotiable between the two parties allowing them to tailor the terms according to their needs. From these types of FOREX Markets, one can become a FOREX Millionaire.
But why should one invest in the FOREX Market? One of the many advantages of the FOREX Market is allowing traders to start with a small amount of capital, allowing anyone to enter the market with as little as $300 USD. Also, it is very liquid giving traders full control over their capital. The FOREX Market also does not charge traders any exchange fees, commissions, and payments, eliminating the need for a middleman between investments and the market; hence, making it more profitable for the trader. The FOREX Market is also available 24 hours through the online Foreign Currency Trading market, allowing traders to get updates on the currency investments anytime of the day.
Experts would agree that becoming a FOREX Millionaire is indeed possible. Learning how the FOREX Market works is the first step to becoming a millionaire in this said market. From the knowledge and information acquired, traders may then identity the role they will play in the market-i.e., buyer or seller. ” To think outside of the box” is especially necessary when making said decision. Then, trading may commence. During trading, traders should remember the practice of not leaving themselves exposed to wipe outs on the FOREX-i.e., the y should learn appropriate money management.
The FOREX Market is indeed a promising work area where one may earn money. Becoming FOREX Millionaires is indeed possible with the proper understanding of how the market works and making wise decision on currency trading.
Rochelle Navarette is a FOREX millionaire from Mexico. She started trading in the foreign exchange market with only $300 as her initial capital.