Forex ??? What It Is?

What is Forex?

Foreign Exchange ( forex ) or known as foreign exchange (FX) is one of the investment options that developed in Indonesia at the moment. Forex Trading is the trading of foreign currency exchange rates in the international money markets. The forex market is the largest financial markets in the world.

A transaction in the forex market are: Governments in the world, the world's major banks, international companies, hedge funds, foreign currency speculators as well as individuals. So with so many players in the forex market is causing a turnover became very quickly. Transactions that occur more than 1.9 trillion US dollars daily so make money can change hands from one place to another in just a few seconds.

As with any stock exchange players can trade forex using Service Broker (Commission house) or do it yourself online via the internet.

Forex trading has several advantages compared to trade other financial products such as trading stocks, namely:

24 hour Trading

Can be done 24 hours a day, 5 days a week, when and wherever we are.

Liquidity

Highly liquid investments with broker/dealers play in the forex market.

Low transaction costs

The brokerage Commission is relatively small, even for online trading through the internet there is no transaction fee but only charge the amount varied. In addition spread also small.

Potential gains 2 direction (up or down)

Have a good profit potential on the currency strengthened and weakened currencies.

Margin Trading

Margin trading with investors making purchasing power exceeds the amount of capital owned.