The concept of forex is simple as compared to what people perceive it to be. It can simply be understood as an abbreviation to foreign exchange. The line should be drawn between forex and forex trading.
Tackling the idea of a forex market.
Forex market might as well be the largest financial market in the world with over $five trillion in daily traded value.
It can simply be explained as buying euros with dollars and then dollars spent are calculated in the total amount spent. This mechanism makes it the biggest trading platform all over the world.
The idea of forex isn’t as complicated. It is simply buying one form of currency with other, a.k.a exchange.
The wheels behind the largest trading platform in the world.
There are two vague terms associated with what is forex[forex คือ, which is the term in Thai] the retail forex market and institutional forex market. These two terms are loosely and voraciously used by the researchers and analysts.
The niche under retail forex constitutes of normal people, like you and me. Once the application to a broker’s platform is done the trade should be made. This turns one into a forex retailer.
This the odd one here. It means that the institutions take part in forex trade. Organizations and entities such as banks, forex brokers, hedge funds and investment forms belong to the institutional forex market.
How to start at forex trading and become a forex retailer.
There are various steps at successful forex trading:
- becoming educated about the forex universe
- choosing a decent forex broker
- license for broker legitimacy
4.spreads which means the difference between the bidding and asking price that is offered by brokers
- leverage which is the quintessential tool for any trader.