Whether boom or recession, regardless of how the international financial markets develop, your chances of making money in the forex market are constantly high, as you can open positions on both rising and falling prices.
This major advantage in comparison to stocks ensures that you will be continuously able to make profits with online trading even in negative economic times. investors, who choose to trade in the forex market and conscientiously make themselves familiar with the topic, can earn profits much faster and more flexible with foreign exchanges than with stocks and that with an equal investment.
This derives from the fact that the speculation period for online trading is significantly lower than for conventional exchange transactions. Positions are usually opened and closed within a day, sometimes even in a few minutes or seconds
The foreign exchange market,or forex (FX), is the world's largest financial market, millions of people around the world trade Forex, and those trades are usually concentrated within a few currencies. In fact, total daily Forex trades exceed $5 trillion. This means it is much easier to get in and out of trades quickly than it is with stocks, especially large trades. Everything ties up nicely: you can end each day knowing exactly where you stand, then start fresh the following day.
There are a number of ways to invest in the foreign exchange market, including:
Forex- The Forex market is a 24-hour cash (spot) market where currency pairs, such as the Euro/US dollar (EUR/USD) pair, are traded. Because currencies are traded in pairs, investors and traders are essentially betting that one currency will go up and the other will go down. The currencies are bought and sold according to the current price or exchange rate.
Foreign currency futures. These are futures contracts on currencies, which are bought and sold based on a standard size and settlement date.
Foreign currency options. Where futures contracts represent an obligation to either buy or sell a currency at a future date, foreign currency options give the option holder the right - but not the obligation - to buy or sell a fixed amount of a foreign currency at a specified price on or before a specified date in the future.
Exchange-traded funds (ETFs) and exchange-traded notes (ETNs). A number of foreign currency exchange-traded products that provide exposure to foreign exchange markets are available. Some ETFs are single-currency, while others buy and manage a group of currencies. Certificates of Deposit (CDs). Foreign currency CDs are available on individual currencies or baskets of currencies and allow investors to earn interest at foreign rates.
Foreign bonds are typically denominated in the currency of the country of sale. If the value of the foreign currency rises relative to the investor's local currency, the earned interest will increase when it is converted.
If you want to test your trading ability with a leading online broker in the FX market , you can just open a demo account with EXANTE. The broker offers Managed Accounts, Institutional Account and VIP Account but no mini account. The trading account can be in currencies like GBP, JPY, USD, CHF and EUR.
Forex is all you need to build confidence and start becoming profitable in the exciting world of trading.