This online market determines foreign exchange rates for every currency. It includes all aspects of buying, selling, and exchanging currencies at current or determined prices.
That may sound too complex to a few. For the sake of simplicity and emphasis; let me say that the foreign exchange market or the fx market as it is also fondly called is akin to a beast, whose taming requires knowledge of a lot of mutable variables.
Some of the products traded in the fx market are cryptocurrencies; ranging from Bitcoin, Litecoin, Cardano, Binance, Ethereum, etc. These cryptos are seen quoted as Crypto and Crypto 2 under the quote section which houses the products.
Other products quoted in the fx market are metals; such as Platinum, Gold, Silver Etcetera. These metals are traded against USD, Euro, or Pounds.
Energies are also traded in the foreign exchange market. Under energy, there is Brent Oil, Natural Gas Oil, Crude Oil. Energies are also traded against currency pairs.
The most well-known are the currencies. These are quoted in the fx market under the category of Forex Exotic, Forex Minors. The currencies range from Great Britain Pound (GBP), United States Dollars (USD), Swiss Franc (CHF), Australian Dollars (AUD), New Zealand Dollars (NZD), Canadian Dollars (CAD) etc. The currencies are traded in pairs against each other.
Some other products quoted in the fx markets are Bond CFD's, Indices CFD's, Commodities CFD's, etc.
So many have dived into forex trading as a way of turning their fortune around without properly equipping themselves with the requisite skill, training, and self-control needed to navigate their way successfully in the market. Let it be clear that, those who see fx trading as a way to amass wealth will not only fail, but they will end up being wretched. Millions of people who through learning equipped themselves with the knowledge of how to tame the beast (fx market) have made a life for themselves trading the market over time. While many more have plunged themselves into poverty, impoverishment, and debt because they started trading the fx market ill-equipped.
Trillions of dollars are traded each day on the fx market and everyone trading is squabbling to get a bite of the pizza. Truth be told, the fx market is not for the faint-hearted, and speaking subjectively from personal experience, I will strongly advise against entering half prepared.
The fx market is traded using a Metatrader5 or Metatrader4 app. The good news is that every broker avails a new trader an opportunity to learn by allowing them to use a demo account that uses real-time chat. I wouldn't want to go into the terminologies in the fx market in this write-up. But, there are two terminologies you need to know whether you trade the fx market or not.
The Bulls and the Bears
Since the fx market is akin to a tug-of-war battle between two currencies, Metals vs Currencies, etc. Hence there is always a push and pull in opposite direction. This is what is referred to as the bullish and bearish movements on the chart. From a layman's point of view; the bullfight with their horn, goring their prey or predators with their horn in an upward thrust, while the bears use their paws and claws to swipe downwards at their prey.
When the forex market is making an upward trend movement we say it's going bullish. While on the other hand when it's making a downward trend movement, we say it's going bearish.
This write-up may be of little or no use to people who already have a robust knowledge of the foreign exchange market. It is just an introduction to the basics for those who are just hearing or might have heard but had no prior knowledge of the basics of the market.
In a follow-up write-up, we will be going into the details, dos and don'ts of the forex market.
I have traded the forex market for some years now and I can boldly say that it comes with its reward if you trade properly and cautiously with a minimum lot size.
Thank you for taking the time to read through this article. This is your path to gaining true knowledge about the goodies of the forex market and the risks too.
📸 Pexels
Posts
0 Comments