How Forex works

Indeed, advertising of this type of investment (although such operations in this market can be called a stretch) penetrated into many areas of our lives - successful traders who earn thousands of dollars in parallel with their main job or lying on the beach, look at us from posters in subway cars , and from banners on the web.
2021-08-19, by ,

#Trading || #Investing || #Money ||

Currencies

FOREX is short for Foreign Exchange, which stands for Foreign Exchange. The same word Exchange in English refers to the exchange or any other trading platform where the exchange of some assets for others takes place, for example, trading in stocks or futures contracts: futures and options (see https://nsbroker.com/en/trading-for-beginners/how-choose-best-forex-trading-strategy for reference). This is where the first misconception about the nature of this market comes from.

Forex firms persistently call the game on exchange rates - either trading on the stock exchange or investments. In reality, the lion`s share of the market for the exchange of some currencies for others takes place on the OTC market between large international banks. This is a relatively "closed club", it is very difficult to get there. Very large amounts of money are traded. The minimum lot is 1 million dollars or euros, the standard lot is 5 or 10 million dollars.

Trading

Currency trading provides, first of all, export-import operations of bank clients, and secondly, but not least, the interests of the own trade and investment departments of international banks conducting their investment activities around the world. It is clear that in order to become a client of an international bank and start buying and selling currency in order to extract "income" from the movement of exchange rates, you need to deposit more than one million dollars into your account.

#Investing