Trading Forex Indonesia
Forex is an international financial market. It was established back in 1976, on which currencies are exchanged. This name comes from the English foreign exchange, that is, "foreign exchange". The Forex market is needed for proper operation of the world economics and ensuring capital exchange between different countries. Forex trading involves central banks of different countries, companies doing international business, commercial banks and various traders (speculators).
In Forex, major convertible currencies are traded concerning each other. The most popular pairs are euro/dollar, Japanese yen/dollar, British pound/dollar, U.S. dollar/ Swiss franc.
Each of the Forex participants has its own goals and objectives:
National banks intervene to stabilize the exchange rate of their currencies;
both importers and exporters come to the Forex market to trade profits for their national currency or, conversely, to buy foreign currency to pay for contracts abroad;
Commercial banks have their business in this sector, consisting in the quotation of foreign currency for buying and selling. The difference in buying and selling price is called the quote spread, which is their income;
speculators use Forex as a source of solid income for those who know how to play the difference in exchange rates, making a lot of profit. And for this, you do not need to have a master's degree in economics.
What is Forex
Many people call Forex exchange, but this is not entirely true. Unlike stock exchanges, Forex operates 24 hours a day, because the world's banks are located in different time zones. Also, Forex is not bound to any certain spot - it is a digital marketer, and you can enjoy it from anywhere in the world: from Moscow, New York or the beach in Bali. The main thing is that you have access to the Internet, provided by the intermediary - the guarantor of the transaction, which will be concluded on his behalf and at his expense. This intermediary for small and medium clients is the prime broker with whom the contract is terminated. It should be understood that a small trader will not be able to directly enter "the same Forex" simply because of lack of funds, because of the standard size of the lot in the Forex market - 5 million U.S. dollars.
The currency exchange rate changes every minute - this is the fact that the idea of playing Forex is based on. For example, if you buy a Euro for $1.2 and the next day it rises to $1.3, you can sell it and make a profit of $0.1. Of course, if you use small amounts, your income is small, so you can only talk about tangible earnings in Forex when you invest at least tens of thousands of dollars.
How to start trading on Forex?
All you need to start playing at Forex is a computer with Internet access and a reliable broker. You can get access to trading only through a brokerage company. However, according to statistics, almost 90% of novice players who have decided to learn Forex on their own, lose money and quit this activity. Why?
There are several reasons for that, and one of the main reasons is the lack of information. Often people start playing Forex, having read only a couple of small articles on the Internet. But to navigate in the world of finance, it is not enough, because your counterparties will be people who know the world economy, fundamental and technical analysis at a very high level. To make money on Forex, you need to make these professionals a worthy competition.
Today there are a lot of companies that train and advise beginner traders. Read special literature, attend seminars of experts on trading on the international currency market.