Forex Made Simple is the essential guide for anyone who wants to make money trading foreign exchange, without all the fuss. You don’t need to be a financial wizard or spend all day glued to a computer screen to trade forex profitably. Including the information you need to know (and nothing more), this book provides straightforward strategies anyone can use–no expensive broker required!
Derived from the words foreign and exchange, forex (often abbreviated simply to FX) is the practice of trading currencies or money. The foreign exchange market, also referred to as FOREX, Forex, retail forex, FX, margin FX, spot FX or just ‘spot’, is the largest financial market in the world. Daily trading volumes are approaching US$4 trillion a day — that’s more than three times the total of the world’s stocks and futures markets combined.
The forex market is an over-the-counter (OTC) market. This means that, unlike stock markets and futures markets, there is no central exchange or specific place where trades occur and orders are matched. Instead, forex dealers and market makers are linked around the globe and around the clock by computer and telephone, creating one huge electronic market place.
Once the domain of the large hedge funds, major corporations and international banks, the forex market has become available to retail traders mostly because of the internet, which has allowed the development and evolution of online trading platforms, so that many firms have been able to open up the foreign exchange market to retail clients. These online platforms not only allow instant execution into the market, but also provide charts and real-time news services. This allows traders to keep abreast of news unfolding around the globe as it happens. The result has been a huge surge in volume of currencies traded as retail clients become aware of the benefits of trading a market that trades virtually continuously from Monday morning Australian time until early Saturday morning Sydney time.
The forex market allows you to actively engage in online trading using broker platforms to buy and sell currencies. The use of leverage when trading in the forex market means that a small amount of money can be used to control much larger positions than would be possible without the use of leverage. But while leverage can help magnify returns, it also magnifies losses when they occur.
Before throwing yourself head first into real money trading you should take the time to familiarise yourself with the principles of foreign exchange trading and ensure you have a full understanding of how it all works. It is also important to understand the evolution of foreign exchange and some of the key milestones in the development of this market into what it is today. So, let’s get started.
- History of foreign exchange
- Major currencies, economies and central banks
- The foreign exchange markets and major participants
- Retail forex dealers and market makers
- The mechanics of trading forex
- How to place a forex trade
- Currency futures
- Macro economics and how it affects forex
- Money management for forex
Forex Made Simple: A Beginner's Guide to Foreign Exchange Success By Kel Butcher pdf