What is Forex?
Foreign exchange is the exchange of money from different countries. The value of one country's currency is constantly changing against the value of another country's currency. Forex traders make money through buying and selling currencies on the foreign exchange market.
What is the foreign exchange market?
Markets are places to trade goods, and the same goes for Forex. The Forex 'goods' are the currencies of various countries. The Forex market is a money market that never stops. It is the "market", anywhere in the world, where any exchange of currencies is made. It operates 24 hours a day, on computers all over the world. Foreign exchange market conditions can change at any time because events that happen across the world affect the value of money.
The Forex market is the largest market in the world where trading between banks, organizations, investors and individuals happens. More than 2.5 trillion US dollars is traded every day. That comes to almost 29 million USD every second!
How to make money trading in Forex
The profit potential comes from the fluctuations (changes) in the currency exchange market. You make money by buying a currency at a particular rate (or price) and selling it again for more than you bought it. The market is highly volatile which means it is constantly changing and therefore offers greater chances to profit but also greater risk. The incentive to trade in Forex is that regular daily fluctuations, say - around 1%, are multiplied by 100 . For more information go to the article on Leverage.
How Risky is Forex Trading?
Losses are unlimited unless you have a 'Stop Loss' on your position. At World Index there is always a Stop Loss, therefore you cannot lose more than your 'margin', the money you are prepared to risk and the rolling fee if it's a Day Trade transaction. However, Forex is risky so only risk what you can afford and is not vital to your well-being.
World Index Trading
World Index aims to make foreign exchange easy for any person who is interested in getting to know the Forex market and trading in it. You do not need to download a special program to your computer because World Index uses the Internet.
This means you can trade, monitor status, check scenarios, change some terms of a deal or close it, anytime, anywhere.
You can start trading using your own private credit card and can make deals using small amounts of money. With World Index we offer a range of benefits that smart traders are looking for.
If you wish to get to know the Forex market, then open an account with us free of charge.