When people start to get interested in trading on the international currency market, they don’t know much about what it is and how it works. Quite often beginners have questions which make them look silly in the eyes of experienced traders. If you are afraid to ask your questions directly, we have collected for you the most popular questions that arise among beginners and the answers to which will allow you to successfully continue learning the basics of Forex.
Where does Forex work?
Forex does not have a physical location. Trades are executed via the Internet, through special trading platforms, which are provided to traders by brokerage companies. Forex or Foreign Exchange Market is an international interbank market where currencies are bought and sold and where the following participants trade: banks, hedge funds, investment funds, brokers, professional and private investors (traders). The purpose of trade is to make a profit by changing these currencies. This market works 24 hours a day from Monday to Friday (except for national holidays). If you want to find a reliable broker, then use this website https://topbrokers.com/forex-brokers-for-usa-traders.
Brokers. Who are they?
In simple words, a broker is an intermediary in concluding transactions of buying and selling currencies, he provides a trader with access to the Forex market. A brokerage company records, accompanies and executes all currency trading operations on behalf of a client (trader).
Do I risk to remain without money?
The answer is obvious: yes. The results of trading depend on the experience and training of the trader. A market participant can independently decide how much amount of money he will risk in a trading operation. It is worth noting that experienced traders risk a small portion of capital in each transaction in order to survive the streak of unsuccessful deals that sometimes occurs with all traders due to a change in the market mood.
When will I earn the first $1,000?
One must understand: to earn a good profit, the initial deposit should not be minimum. Trader’s income is highly dependent on the situation on the currency market. When the market moves actively, it is possible to earn sufficiently large amount of money by means of one operation, but if there is no clear direction in the market, it is more difficult to do.