The word “Forex” is a shortened term used for ‘Foreign Exchange’. It is the process of buying and selling currencies, eg. USD/ZAR, in this case ZAR stand for a price of one USD and USD becomes a product. In simply terms how many ZAR you need to buy One USD. The prices fluctuate because of various political and economic reasons.
In Forex Trading one has 24 hours a day from Sunday night to Friday night to take advantage of price fluctuations.
Anyone who has connection to internet and has opened a trading account with registered brokers can have access to trading Forex.
There is a wide range of commodities to be traded which include “hard” commodities (Gold, Silver, Platinum, Crude Oil etc) as well as “soft” commodities (wheat, cotton, cocoa, etc)
Trading commodities gives a Forex trader an easy and cost-effective way to diversify his/her trading portfolio.
There is a correlation between commodities such as oil and gold with currencies such as USD, CHF, EUR etc.
Indices are financial instruments that group together various stocks sharing similar characteristics. For example, indices represent the value of listed companies such as the Dow Jones 30, DAX 30, FTSE 100, FTSE/JSE Top40, etc.
Reasons to Trade
For starters, you can buy/sell financial instruments without having to take ownership of the underlying asset.
In other words, you are speculating on the future price movements of the asset. These include stocks, forex, indices and commodities.
Make instant profits in your own time at your own place.
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