The Forex market is active 24 hours a day six days a week. It Opens on Monday morning in the New Zealand time zone and continues until Friday afternoon New York time. This market has grown significantly in recent years and with the addition of CFDs, has given traders the opportunity to operate all kinds of financial assets such as Forex, Indices, Commodities and stocks.
In Forex everything is related to Forex trading and CFDs. The currency of a country has a different value compared to another currency and the exchange rate varies daily. Profits can be generated today by buying a currency at a low price and selling it in the future at a higher price. Traders can also benefit from a downtrend selling a coin today at a high price and buying it again at a lower price in the future.
There are hundreds of currencies around the world, however the major currencies are those that are operated the most as the British Pound, Euro, Dollar, Swiss Franc and Japanese Yen.
The same type of trading can be done on any CFD, allowing traders to benefit from fluctuations contracts as Gold, Silver, Oil or major stock indexes like the S&P 500, Dow Jones, NASDAQ and many more.
There is not a central physical location or Exchange in the Forex market. No matter what time it is, trading is always being made in different parts of the world. Other markets may take days off but the Forex market does not rest because every country is involved.
Each symbol has a specific contract or Spread, which represents the cost of the transaction involved. The Spread is the difference between the Bid Price and Ask Price, where the Bid Price represents the price at which Traders can sell a specific contract and the Ask Price represents the price at which Traders can buy a specific contract.
The most important benefit of the Forex market is that it requires the lowest capital throughout the financial industry to start trading and Traders can start investing in the Financial Markets with $ 100, much less than what is needed in the Stocks, Bonds, Futures or Options.
This is possible thanks to leverage. Leverage means that a trader can control the total value of a contract having deposited a small sum in a Forex account. Leverage is what keeps low the risk of capital and gives traders the opportunity to make big profits.
At BelforFx we know that a successful trader is an educated trader, so we provide our Traders an outstanding Educational Center with valuable information such as Forex courses, educational videos and various third party Forex strategies to benefit our community of Traders.