Updated: Jun 9
In terms of the core business, Forex market is similar to the well-known commodity or stock exchanges. Buyer and seller, as well as currency supply and demand, occur. Trading takes place via computer networks operating around the world. Placing orders is possible through transaction platforms made available by brokers (in most cases for free), which allows trading to individual investors.
The Forex market due to its specificity is a very attractive market for investors, the main distinguishing elements are:
Trading on the Forex market takes place 24 hours a day from Monday to Friday, which allows you to create a strategy at a selected time, e.g. transactions are carried out only during the European session.
This powerful tool for trading on the stock market allows you to invest many times more than your capital on the account. With a leverage of 1: 100, you can open positions 100 times higher, e.g. with a deposit of USD 1,000, the maximum transaction value is 100,000. Please note that leverage affects profit and loss.
Market participants are central and commercial banks, international corporations, individual investors, investment funds, brokers and governments.
With such a varied type and number of suppliers, liquidity is huge, which means that concluding buy and sell transactions with immediate and pending orders is not a problem
You trade so-called Lots that reflect the volume of your transaction. There are four lot sizes:
• standard 100,000 (one pip is worth USD 10),
• mini 10,000 (one pip is worth 1 USD)
• micro 1000 (one pip is worth USD 0.1)
• nano 100 one pip is worth 0.01 USD)