Forex

What Is Forex

The Forex (Foreign Exchange) is the largest financial market in the world accessible to individuals. No longer do you need to be a bank or a financial institution to become a Forex Trader. For years, the OECD Financial Authorities have allowed individuals to enter the Forex Market and to take advantage of huge opportunities with high yields on their capital.
While being risky, the Forex markets offer unprecedented return opportunities, in comparison to the traditional domestic financial products for individuals, such as bonds.
Be aware that while being accessible to almost everyone, the new Trader needs to get initial training on various topics such as basic and general knowledge on the Forex market, trading platforms, real-time fees, graph analysis, economic calendar alerts, and more.

image
image
Forex Advantages

WHY FOREX?

The Forex market is accessible by everyone, from everywhere and on every platform, and at any time, 24 hours a day.

  • The Traders can earn on whatever the chosen instrument is appreciated or depreciated.
  • Also, the Traders can speculate on much higher amounts than their initial investment, thanks to the leverage effect.
  • The tools set offered to the Traders allow them to trade in total transparency and to monitor all the transactions they have opened in real-time.
  • Therefore, the Trader can define his/her strategy, apply it and monitor it. According to the instrument's value variations, the strategy can be easily redefined.
  • Forex Example: Trading on the EUR/USD
  • Let’s assume the EUR/USD rate is 1.1200 (meaning 1.000 EUR = 1.1200 USD).
  • After having performed duly analysis, you estimate the EUR/USD is in an increasing tendency; therefore, you perform a Call (or Buy) order. You decide to invest 1,000 EUR, with a leverage effect of 100 (thus, your investment is of 100,000 EUR = 112,000 USD.)
  • Two hours later, the EUR/USD rate has increased and has reached the value of 1.1250 USD (in this case, we say that the EUR/USD has increased by 50 pips).
  • Let’s suppose that FXMC applies a spread (commission) of 3 pips; therefore, your transaction now has a value of: 100,000 * (1.1250 – 0.0003) = 112,470 USD.
  • Eventually, you have earned 470 USD (This is to be put in regards to your initial real investment: 1,000 EUR = 1,120 USD), thus a net yield of 42% in just 2 hours.