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| Monopoly |
Foreign exchange trading or Forex is it is shortly called does not require a person to possess super intelligence or IQ. Trading currencies or even trading of stocks for that matter is not only meant fro those who have extraordinary intelligence quotients. All it requires is to understand the working and mechanism of the Foreign exchange market. Hearing words and phrases like liquidity ratio, central bank intervention and inflationary demand might make give you a boring feel or it might make take you back to the good old days of your college when you dreaded those lectures on Economics. Surely you do need brains to get involved in forex trading. But then you would need to use your brains in any career or business that you engage yourself. It is easy to enter into the Forex market with very little investment. However, just because it is easy to enter the currency trading market does not mean it is easy to make profit in the currency trading market too. It is necessary to possess knowledge of the forex market. You will have to understand and establish command over basic concepts and fundamentals of the Forex market terminology. You will need to understand the importance of the technical indicators of the functioning of the forex market. Thus it is imperative that you gain complete knowledge of the currency market before entering into the field. By arriving at a judicious and wise combination of knowledge, instincts, risk and experience you can make a lot of money in the currency trading market or the forex market with very little initial investment.
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| Currency Trading |
Until now, the forex trading market was open only to big companies, banks, financial institutions and brokerage houses. It was not open to the individual investor. Today you can invest in the Foreign exchange market without investing a lot of capital.
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Advantages of Currency trading
The advantages of trading in currency are numerous.
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| Currency Graph |
Round the clock market: The biggest advantage of the Forex market is that the currency trading market is a market that remains open round the clock. No other financial market stays open and in operation twenty-four hours a day. This results in continuous and immediate response of economic and political events.
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| CurrenCy TradinG |
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| MONOPOLY |
No centralized exchange: The forex market works without any centralized exchange. There is a direct relation between the persons involved in currency trading over the telephone or the Internet.
Superior Liquidity: Forex is by far the most liquid of all trading options. Trading volume is 50 -100 times greater than with stocks. Due to its huge size, the currency market preserves its liquidity and protects the small-scale trader.
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| Currency Mexican Real GDP |
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| CURRENCY TRADING |
Minimum or No Transaction Cost: Forex Brokers usually advocate commission free trade. The only amount the traders get in any transaction is the spread. Spread is the difference between the purchasing and selling price of each currency pair which is minimum as 1 pip.