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Stock Market - Market Risk - Market Timing - Forex Market

Managing Market - Share Market - Trade Market - Time Market






The Forex Market

* This article is divided into three sections. The first section is for beginners. The second section is for advanced traders. The third section is for everyone. Section #1. For beginners .

On this article I will briefly describe what the Forex Market is for those who don’t know about this subject. Also I will describe other trading opportunities that exist today on the Internet. I think that trading is one of those dream businesses that many people rush into, but to start trading online without the required knowledge could be a big mistake.

What’s appealing about this business opportunity is the financial freedom it can bring to your life. Successful traders make lots of money working from home with their computers. Keep in mind that on this business . 1) You don’t have to create any product. 2) You don’t have to advertise anything. 3) Basically you just invest some money and multiply it more and more. There are different trading opportunities on the Internet nowadays. I think that the hottest of them right now is The Forex Market.

I will explain you why. Currencies from many different countries were backed up by gold about one hundred years ago. It was called The Gold Standard. This basically meant that to print certain amount of paper money a predetermined amount of gold was needed. Also you could walk into the bank and request that your currency bills would be converted to gold. Then you could leave the bank with the gold. This was a treaty between many countries and it lasted a few decades. Suddenly something happened that changed everything. Due to economic circumstances The Gold Standard was changed into a more flexible economic system. Now, most countries were not required to back up their currencies with gold anymore, as long as they backed up their currencies with US dollars, everything was OK.

Eventually this didn’t work well either. So, at the beginning of the 70's decade this rule was totally abandoned and currencies started to float freely on the market. This means that since that era until present time world currencies are not backed up by gold anymore, nor are they backed by any other particular type of money either. There are exceptions though. For example, some currencies of European countries are pegged to the Euro. Their exchange rate is fixed. The same happens with the US dollar in relationship with other no so popular currencies. That’s another story that I won’t explain right now. The point is that most currencies change in value freely on the Forex Market today. Forex is an acronym for Foreign Exchange Market.

For a long time this market was reserved only for ‘BIG BROTHERS’. In order for you to access this market you needed astronomical amounts of investment capital. Everything changed with the computer age. As I have always said, everything is easier on the Internet. So, new online brokers emerged that allowed ‘the little guys’ play this game. Now you can open an account with as little as $300 when you needed millions just to think about starting on this business a few years ago. The good thing about this market is the huge leverage you get. The brokers usually lend you up to 100 times as much as you have for trading. What does this mean? For example, if you open an account with 1,000 US dollars, you can control, as much as 100,000 units of the foreign currency.


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Stock Market Market Risk Market Timing Forex Market
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