Forex is the international currency market where world currencies are traded against the US Dollar. The four major currencies that are traded against the US Dollar are: GBP/USD (British Pound), EUR/USD (Euro), CHF/USD (Swiss Franc) and YEN/USD (Japanese Yen) Forex/Currency markets are diverse in kind. They are Spot Forex Market, Forward Market, Futures Market and Options Market. Spot Forex Market is the area of our specialization.
This is a lucrative business in which affluent people may, by investing their funds, reap richest dividends. In any business, there is only “Buying and Selling” but, in currency market, “Selling and Buying” can also be done, thus enabling the investors to do two-way business electronically on the computer, cashing in on the currency fluctuations, carefully gauging their patterns and adroitly prognosticating their trends.
Earning potential is very high in the currency market when compared to other business enterprises. This is, however, possible only when the trading is successfully done with consistency. Investment in the currency market should be high so that it may withstand the fluctuations of the currencies, especially when the trading turns negative. To put it candidly, predictions may not always be precise and, therefore, it should be buttressed by strong equity to face the fluctuations when our calculations go awry, but this is a rarity!
This business too, like other kinds of business, has its own pitfalls. Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.