We will have a look at what Forex is all about and how it all works. The thought about Forex day trading may arise questions like…

• Is it possible to make money as a Forex trader?

Yes, you can make a fortune!

• How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the changes in the currency exchange market.

• Can you loose money at Forex day trading?

Yes, you can loose the money you put at risk!

• Is it volatile?

Yes, it indeed is!

• Is it a risky business?

Yes, it’s a risky business!

The leverage of Forex currency trading

The normal leverage is 100:1. For every dollar you put at risk, you can borrow up $100 to trade. For example, if you have $1000 you can control $100,000. This liquidity and leverage is unique for the Forex trading market.

The money exchange business has existed for thousands of years. In the early day’s people were exchanging one kind of coin for another, gold for silver etc. Now a day’s we use the Forex market to exchange currencies.

The Internet has caused a revolution in the way Forex trading is carried out

Before Forex day trading entered the Internet at the end of the 90′s, the trading was done via phone orders, fax orders or in person. The trading could only be executed during business hours.

The Forex currency trading was also exclusively for major players, for example banks and governments. It was a very time consuming business, still highly lucrative.

Now when the Internet is in use, the Forex market is radically changed

The web has enabled 24 hours trading and credit cards for fund deposits. The Net has also opened the door for average Joe to be able to join this extraordinary business.

In the old day’s you would need thousands of dollars, just to get started. Now you can start with as little as $25.

How to get started?

As an individual Forex trader there is two steps to fulfill before you can make your first trade :

• Register at a trading platform
• Deposit funds for trading

DISCLAIMER

Forex trading carries a high level of risk and may not suit all investors. The high degree of leverage can result inmassive profits or losses. Before deciding to invest in foreign exchange consider your investment objectives, level of experience, and risk appetite. The possibility of loss of some or all of your initial investment exists and therefore you should not invest money you can’t afford to lose. You should be aware of all risks associated with Forex trading and seek advice from an independent financial advisor should you have any doubts.

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