Forex stands for foreign exchange market. Forex market is faced paced and never sleeps. This is a technical market, and quite confusing. Forex is commission free, then the exchange and brokerage fees are absent.
One of its main advantages is the margin. This allows the dealer to deal with the money during the folds higher than that of the stock or future trader. There is a prescribed percentage of the dealer must commit to when dealing with Forex.
This is both profitable and highly risky. the market is dominated by five major pairs, which together makes up over 85% of the market. These pairs are EUR / USD, USD / JPY, GBP / USD, USD / CHF, USD / CAD. currency listed first is the base currency is always equal to the first
So when you see the EUR / USD 1.37, it means that 1 euro $ 1.37. When the number is increasing, which means that the euro is strengthening against the dollar. There are two sides of the Forex quote, bids and offers. bid is the price the seller offers the currency and the price is what the seller is willing to take the currency.
the major difference between these two numbers (expansion) means less profit. tighter spread is better for you, but it is profitable only in combination with good execution. This is where a good broker comes to mind. Leverage is very important and it is something that your broker will provide. If you have a low capital to provide leverage is high. There are many uncertainties when it comes to the Forex market, so take the time to educate themselves on how to equip yourself with a good broker.