Should you want to learn to trade forex here are some of the basics you should know. Currency or forex markets are the biggest financial markets. Daily the volumes of the market are $3 trillion. That’s a whole lot of trades been done everyday. Since its one of the most lucrative markets, one can learn to trade forex Forex is traded in currency pairs. This means that Euros are bought and simultaneously British pounds are sold or Dollars are sold and simultaneously Japanese Yen are bought and so on. There are six major currencies that constitute 85% of the market share and are known as majors. These are the US, Canadian and Australian dollars, Euro, Japanese Yen and the British Pound. The Swiss Franc is also heavily traded. All other currencies are known as minors.
Buying and selling the currencies
Currencies are always traded like EUR/USD or JPY/USD and so on. In EUR/USD, EUR is the base currency. Rates are quoted as Bid/Ask rate. The “Bid” rate is the rate at which the base currency can be sold and equivalent other currency can be bought. While the “ask” rate is the rate at which the Base currency can be bought and equivalent other currency bought. The difference between the bid and the ask rate is the spread or the profit that the forex trader can make.
No central market where the trade is done
Forex currency market is real time market where the value of the forex is changing every second. A Forex market has no physical limitations and is conducted over the internet and through the phone. Unlike the stock exchange, the forex market has no central exchange. All forex deals are conducted through the forex trading software and that is why it can indeed be easy to learn to trade forex like the trading it can all be done online.
Using forex signals
Forex trade is conducted through the forex signals that are sent by major financial institutions and global banks. To access the forex signals, forex traders need to subscribe to the alerts. Te forex signals are sent to the trader through the email or directly to their phones. These are short text messages that tell the forex trader whether to buy sell or hold the currency. These signals are valid only for a short span of time, about 1 hour. The forex markets change continuously, the signals also change accordingly.
Those who don’t want to be stuck behind the computer while conducting forex trade also conduct the forex trade through robot forex trade software, were the robot will automatically buy and sell orders according to the criteria fixed by the customers.
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