Forex Trading Course in India

Make Money from Forex Trading

Foreign exchange market is the place where currencies are bought and sold. This is a unique

market because of number of reasons. Firstly, it is a market which is free of external controls and

it cannot be manipulated. Secondly it is largest liquid financial market of the world with

transaction reaching between 1 and 1.5 trillion USD daily. Because of such large transaction, no

single investor can affect the price of a major currency. Because of high liquidity, traders can

open and close positions within few seconds because willing buyers and sellers always remain

available in the market. Small fluctuation in the currency prices is the unique feature of this

market that attracts investors with a broad range of strategies.

How forex works?

Forex market does not have any centralized exchange and the trade takes place via

telecommunications throughout the world. Market remains open 24 hours a day from Sunday

afternoon to Friday afternoon. It is a very common practice for traders to speculate on currency

prices by depositing some money in their trading account and borrowing the rest from their forex

broker. This is known as margin trading.

Margin trading

Trading done with borrowed money is known as margin trading. In forex market, forex

investments can be made with small money only. This allows traders to open large positions by

investing much smaller capital in their trading account. Therefore a trader can carry out larger

transactions very quickly with his/her small initial capital.

Investment strategies

Technical analysis and fundamental analysis are the two common strategies used in the forex

market. Most of the small and medium sized traders use technical analysis which provides all

information about the market and the future fluctuations of a particular currency can be seen in

the price chain. In other words, all factors affecting the price have been considered by the market

and can be seen in the price. Traders using technical analysis look at the lowest and the highest

prices of a currency, volume of transactions and the opening and the closing prices of a currency.

A fundamental analysis includes the analysis of the current situations in the country such as

political and economic condition of the country and other related rumors.

Forex trading is one of the most rewarding investments but certainly it has great risk

associated with it. Margin trading helps the investors to make potential profits relative to initial

capital investments. Another most important benefit of forex trading is that its huge size prevents

traders to affect this market for their personal gain. In other words, forex market provides equal

opportunity for making money to all the traders. Short-term investment requires a great

carefulness, therefore traders using technical analysis feel relatively confident.