Forex Trading

What is Forex Trading: How to Trade in Forex, Forex Market Meaning

What is Forex Trading: How to Trade in Forex, Forex Market Meaning : In this post, I am sharing an important details about Forex Market. So read the topic carefully till the end.

One good thing about Forex Market is that, you can enter in Forex Trading at any time of the day based on your convenience. This global Foreign exchange market (FX, Means FOREX) is one of the largest and most liquid market (More Buyers and Sellers) in the world as measured by the daily turnover with an average of daily trading exceeding more than $5 Trillion US Dollars a day.

What is Forex Market?

If you have a question in Mind that what is Forex. Then read the topic very carefully.

Forex is also known as the Foreign Exchange. Forex or Currency trading is one of the Decentralized global market where all the currencies of the world trades.  In Forex market trading there are so many private investors as well as the individual trades are trading on a daily basis because it is giving several advantages that are not available in the other markets.

Why Trade Forex?

There are so many other trading options, then why trade Forex? There are many reasons to trade in Forex. If we ask  from four different types of person, you will get four different answers from them. But making money is the most common reason for why trade Forex.

Why so many people are choosing Forex market?

As I already told you this is the biggest market in the world with an average trading of more than $5 Trillion US Dollars a day. One more reason behind it is that Forex market never sleeps.

Forex market Hours

Do you know that the Forex market works 24 hours and 5 and 1/2 days a week. It is because, the governments, private individual and corporate who requires the currency exchange services are all over the world. Only because of this Forex market never sleeps.

The continuous activity in the Forex market starts from from the Monday morning opening in the Australia to the afternoon close in the New York. Between these point of time, you can find an active pair to trade.

Long Term or Short Term

In Forex Market, a trader can trade in both types long or short. That means a Forex trader can trade in Forex Market for long term as well as for short term. There is no time limit in Forex Trading.

Other Benefits of Forex Trading

In Forex Market, Leverage plays a crucial role. Most of the accounts in Forex trade with a little or you can say no commission. There is also no exchange or data license fees. Generally, the retail transaction fee is also very less.

What is Leverage in Forex

The word Leverage is the mechanism by which any trader can take the position larger than the initial investment. Leverage is one more reason to trade in Forex. For an example, if you are trading in the equity market, the maximum leverage a stock broker can offers is 1:2 but in case the case of Forex Market, you can get the leverage up to 1:50.

Not only this in many parts of the world even the leverage is higher than this. This is also one of the most common reason of why Forex trading is so popular.

If traded with high leverage, any trader with a small investment can trade higer volumes of currencies and thus gets the opportunity to make a significant profits from the small movement in the market.

But, if the market is against your assumptions, you can even lose a high amount. If this market is rewarding you with higher returns, then it can also make your trading account empty. 

How to Trade in Forex 

If you are planning to start your trading in Forex market as a currency trader, then it would not cost a ton of money as it is needed in trading stocks, option or future market. There are many online Forex Brokers which provides you the facility to trade in forex. If you want to open a Forex Trading Account with us, then mail us on our E-mail id.

Forex Market Central Location?

Forex market is divided into the four major trading sessions.

  1. The Sydney session
  2. The Tokyo session
  3. The London session
  4. The New York session.

Forex Market Timings

Below you can see the timings of Forex market. This table shows the opening and the closing time of each session of Forex Market.

1. Summer Session (Around April – October)

TIME ZONE

EDT

GMT

Sydney open

Sydney close

6:00 PM

3:00 AM

10:00 PM

07:00 AM

Tokyo Open

Tokyo Close

7:00 PM

4:00 AM

11:00 PM

08:00 AM

London Open

London Close

03:00 AM

12:00 PM

07:00 AM

04:00 PM

New York Open

New York Close

08:00 AM

05:00 PM

12:00 PM

09:00 PM

2. Winter (Around October – April)

TIME ZONE

EST

GMT

Sydney Open

Sydney Close

04:00 PM

01:00 AM

09:00 PM

06:00 AM

Tokyo Open

Tokyo Close

06:00 PM

03:00 AM

11:00 PM

08:00 AM

London Open

London Close

03:00 AM

12:00 PM

08:00 AM

05:00 PM

New York Open

New York Close

08:00 AM

05:00 PM

01:00 PM

10:00 PM

One thing you should note that the actual opening and closing timings of Forex Trading depends upon the local business hours.

Conclusion: If you like this article on Forex Trading, then do a comment below in the comment box. You can also share it to your friends and wherever you like.

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