All about: Forex

Forex stands for Foreign Exchange. Forex trading is becoming extremely popular as a way to earn a lot of money quickly. It is similar to shares, where you invest your money, but it is a little easier for those who are just beginning in investments. Learn more about Forex in this article.

The basics of Forex trading

Forex trading is done over the internet and is a way of gaining money by trading between currencies. You will usually deal between two currencies. US dollars to euros is the most common pairing, but you can also opt for pounds sterling to euros. Forex trading for beginners There are a number of platforms that you can start with to learn about Forex dealings. There are also a number of Forex sites offering advice about when to trade and the programs to download. However, it is worth downloading a few free trials to find out whether you can do it or not.

Free demo versus live accounts

There are two types of Forex accounts that you can have. Most people will start with demos and this is the best option, whether you are a beginner or you have been trading for years. The benefit of a demo account is that you can determine whether a piece of software is the best fit for you. Like school subjects, not everyone will get on with the same program, so it's worth shopping around and trying different ones. When to move onto live accounts The demo account is the time to test the waters and find out about the risks. There are a number of risks involved with Forex trades and you'll need to work out what they are before you start spending real money. Once you are happy with the software and understand more about trades, you can get the live account and invest your own money.

How much do you gain?

Like stocks, a Forex trader puts himself at risk. However, the only time that you will lose money is when you decide to sell. Due to that, it's possible to make thousands in a month, but this will all depend on the amount that you're starting off with. Make money while you sleep You don't have to do the trades yourself. There are programs that can be set to do everything for you, which means that you can make money even when you're away from the computer. There are a few downsides to this, and it will take experience to be able to benefit highly from it. However, it does mean that you can earn more by doing less work.