As you have noted, it is always the relationship between two currencies. You can either buy or sell the transaction. For example, if you estimated that the Euro will appreciate against the Dollar, you should sell EUR / USD (enter sold in this case), in which case the EUR / USD ratio will decrease.
The opening hours are also different. It is possible to trade 24 hours a day, 6 days a week. It starts on Sunday night and ends on Friday night. Because it’s like this? Because it starts in Sydney business hours, after Tokyo, London and finally ends in New York. With the StsRoyal you can be sure of the best quality trading now.
Another important feature of FOREX is the possibility of leverage. PIP ( Price Interest Point ) is the smallest price unit of any currency market. In FOREX, your gain is on PIPS. Equals 1/100 of a penny. That is, if you invest 1 dollar, you will be controlling 100 dollars in value in FOREX. This is why there is a high leverage in FOREX .
With all this leverage, you can earn a lot as well as lose a lot. You need to study graphical analysis well to get started on this investment.
What are the risks of FOREX?
On the Internet, it is difficult to find reliable articles on FOREX . This is because most websites are from brokerages and they hide the risks of FOREX .
As mentioned above, exchanges occur within the brokerage. If a customer is positioned long on EUR / DOL, for the transaction to occur another customer must be positioned short on EUR / DOL.
- When there is no other customer in the opposite transaction, the broker can do that. But this generates a conflict of interest since if the client wins the position the broker loses. As there is a lot of volatility in exchange rates, if you position yourself against the gain position, in a short time you can lose a lot of money.
- Because it works around the clock, 6 days a week, you will need to invest a lot of time to invest in FOREX.
- Foreign exchange markets are difficult to predict due to many factors involved.