WHAT IS FOREX?
As the digital world becomes increasingly sophisticated, all jobs can be done in a short and fast process. There are also various business opportunities on the internet, one of which is the forex business. The forex business is a global business, and now along with the advancement of the internet, forex business people can do this business anywhere and anytime. However, is it true that forex is a very profitable business? is this business legal ?. In this review, Anymorebusiness will discuss it thoroughly.
What is forex?
The term forex (FX) stands for foreign exchange. So it can be interpreted that forex is an activity of trading a currency with other currencies that involves money markets around the world that occurs continuously. The forex business will generally continue for 24 hours a day for five full days a week.
The forex market is the busiest money market in the world with a very high level of liquidity. Within a day, the forex market is able to make transactions of more than trillions and even billions of dollars per day. So, it is possible that multiple profits can be easily achieved in this business.
How the forex market works
The forex market is basically the same as a money exchange. When a market participant makes a purchase against a currency, that actor has immediately sold another currency to buy that currency. The currency comparison is usually known as a "pair" which can be interpreted as a comparison of one country's currency with the currencies of another country.
for example, when an American buys euros, that person has sold his US dollar currency at that time. The currency comparison in this example in the forex market is known as (EUR / USD). In the forex market there are many other currency comparisons such as (GBP / USD), (EUR / JPY), (CAD / CHF), and so on.
Forex market participants
Current forex market participants have experienced rapid progress. So that the forex business is not only carried out by financial institutions. But it can also be done by all people in various countries.
How come? Currently, brokers have made many conveniences to make it easier for investors. So that now, with only a few dollars a person can make transactions on the forex market.
The forex market players are usually called "traders" and when they are buying or selling in the forex market it is often known as "trading".
Making forex a business
Not a few people make forex a business. They think the forex business is capable of providing lucrative benefits. High market volatility makes some people challenged to do so.
They are not aware, the forex business can also give them multiple losses. This is proven by the number of people who are not able to survive in this business. In total, more than 70% of people fail when trading.
However, there are approximately 30% of people who are successful in this business. They are the ones who can hold back when hit by the market. People like George Soros, Bruce Kovner, and others are examples of people who have succeeded in the success of the forex trading business.
Is forex a scam?
Of course this question often arises among the general public. This question often appears in various forums and on social media.
In essence, the forex business is not a scam. However, there are some people who commit fraud carrying the forex business. Traders should be aware of such circles so as not to be tempted by their lure.
Traders should also be selective in choosing a broker to ensure your money remains safe. There are several criteria for choosing a forex broker, namely:
1. Have a clear identity
2. Has been standing for a long time
3. Has a regulatory status for FCM, CFTC, NFA,and so on.
Conclusion :
Forex is the largest currency trading platform in the world. The forex market in general works more or less the same as money exchange which can be done by all people around the world. So it is possible to take the maximum advantage of this business. But it needs to be studied first so that doing forex business in the end does not cause losses.
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