Forex trading is considered as liquid business as you are not dealing with any kind of physical goods. What you are actually doing is trading in two currencies in which while you buy one currency, you are selling another. And the spread is your profit. Even though it sounds very simple you need to try your hand at this for sometimes before you are really successful. Forex trading is being done by bankers who are known as market makers. There are also brokerage firms who deal with forex. In fact this market is open 24 hours for 5 days a week. The business starts 20:15 GMT on Sunday until 22:00 GMT Friday.
But what exactly is forex trading? There are many guides for forex trading for beginners. In this article I will give you some simple information by way of introduction to this type of trading business. In simple words in forex transaction one currency is exchanged for another. So how do you make money out of these simple transactions? There are certified brokers who help you buy and sell different currencies through internet for a small commission. You need to register with one. Be careful while opening the account. The Commodity Futures Trading Commission (CFTC) in US regulates the forex activities. So if you are from US, be sure to check that the broker is a registered member of CFTC. If you are located outside US, you need to be certain that the broker is registered with the appropriate authority of your country of residence as per requirement. You can open a simple forex account with the minimum amount of $300, but usually the standard amount is $2000. After you register, there is mock trading to help you learn the tricks of the trade. Then of course you go for actual trading.The most useful tip for forex trading for beginners would be to start with a mini account before you graduate to the high volume trading in forex.
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