Forex live usdinr forex pros and cons


Have you ever thought of buying or selling money? It sounds kind of funny, but there is a way for you to do just that in the Forex market. Forex is a nickname for what is more formally known as the for eign ex change market.

The foreign exchange market is the largest financial market in the world. It is estimated that somewhere between 2 and 3 trillion dollars worth of currency is exchanged every day!

The Forex market is a pure market and free from any external control. It is considered a perfect market since the price of a currency is based solely on the supply and demand of a particular currency. So, what exactly is exchanged on the foreign exchange market? This unique interaction results in currency being exchanged in pairs.

For example, the Euro can be traded against the Dollar. Instead, the Forex Market is considered an Over-the-Counter OTC market as it is run entirely through a continuous network of banks and brokers. The Forex markets involve a web of currencies from forex live usdinr forex pros and cons the world, and currencies fluctuate in value frequently.

A Forex trader will try to make a profit in the foreign exchange market by taking advantage of these market movements. Currency trading was historically based on a gold standard. This means that currencies were valued forex live usdinr forex pros and cons terms of gold, rather than in terms of other currencies. The original gold exchange standard provided stability for currencies, but had a weakness of boom or bust patterns.

A historic accord was struck in at the United Nations Monetary and Financial Conference, commonly referred to as the Bretton Woods Agreement — famously named after the great Tiger Woods who presided over the conference. In the aftermath of the Great Depression and World War II, the Bretton Woods Agreement forex live usdinr forex pros and cons designed to bring more economic security to the global marketplace and to ensure world peace.

The Bretton Woods Agreement evolved currency exchange in several ways, one of the changes was for the U. Ultimately, the dollar was not able to defend the fixed rate established by the Bretton Woods agreement and the decision was made to float the dollar. In recent years, the widespread use of the internet and personal computers-which began in the s-has taken currency trading to a whole new level.

It is now possible for almost anyone to open an account and participate in the Forex Market. There are hundreds of currencies throughout the world most of which are tradable but there are several key currencies which account for the majority of Forex volume. Forex live usdinr forex pros and cons most popular currencies are referred to as the major currencies. The majors are as follows:. Currency is always discussed in Forex with 3 letters see acronyms in parentheses above.

There are three potential markets for a Forex investor to trade currency. The spot market is currently the largest market for exchange, however in the past the futures market was popular since investors could hold currency for long periods of time.

The spot market is where currencies are bought and sold according to their current price. A particular currency is exchanged for another currency based on the currently agreed upon exchange rate. These exchanges are typically facilitated by either a broker or a bank. In the futures market, contracts are bought and sold based upon a standard size and settlement date on public commodities markets. Investors agree to buy or sell a fixed amount of a specific currency at a fixed exchange rate on a fixed date in the future.

Forwards and futures markets are often used to hedge against trades made in the spot market. Some investors will specialize in one type of market while others will try and use all of them to their advantage. Forex markets are the 7-Elevens of the financial world — not because they offer investors overpriced snack foods and frozen beverages, but because they are always open.

You can pretty much trade currency any time of the day. Transactions are conducted around the globe via telecommunications 24 hours a day starting on Mondays at You are almost always guaranteed to find a broker who is willing to help you conduct a currency exchange in every time zone during the entire week. This 24 hour availability is possible since there is overlap between the major currency hubs around the world throughout a day.

The typical Forex day begins in Tokyo at As with any type of financial market, Forex offers several advantages along with a few disadvantages. Forex trading is an exciting and fast-growing marketplace. Exciting opportunities exist as Forex trading continues to evolve and grow. You forex live usdinr forex pros and cons then find out for yourself if Forex is for you. We respect your email privacy. Please note that Forex trading involves substantial risk of loss, and may not be suitable for everyone.

Quick History Lesson Currency trading was historically based on a gold standard. Major Currencies There are hundreds of currencies forex live usdinr forex pros and cons the world most of which are tradable but there are several key currencies which account for the majority of Forex volume.

The majors are as follows: Types of Forex Markets There are three potential markets for a Forex investor to trade currency. Cons As with any type of financial market, Forex offers several advantages along with forex live usdinr forex pros and cons few disadvantages. Pros The market is open 24 hours a day during the work week. A trader can maintain an open position for any period of time. No commissions, exchange fees, government fees, brokerage fees, etc. Brokers receive payment with the difference between buying and selling prices called the bid-ask spread.

The ability to leverage investments. Brokers allow investors to control a larger amount of money than their principal investment which results in larger profit margins. Many brokers allow trial or demo accounts, so you can practice trading before risking any of your own money. Superior liquidity and speed. Forex transactions are conducted within seconds online. Cons The ability to quickly lose money. Currency markets pose substantial risk for unsophisticated investors and fluctuations in exchange rates can result in fast losses, magnified by leverage.

There are many unscrupulous people on the internet who try to scam people out of their money with Forex trading; be sure to thoroughly research all brokers before opening a Forex account. The Choice Is Yours Forex trading forex live usdinr forex pros and cons an exciting and fast-growing marketplace.