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If you are considering investing money in the Forex, it’s important to know as much as you can about it. While it can be a great way to make money, you'll also find that it’s very easy to lose money, if you don't know what you are doing. Here are some facts about Forex to help you build your knowledge.
Forex Facts You Should Know
You don't have to pay commission on Forex. This is the main reason why it is preferable to equity trading. You can easily make money while trading Forex, because of the easy access to information and live updates online. The US dollar, Japanese yen, Euro, British pound, Canadian dollar, Australian dollar and Swiss franc are the top 10 currencies. Try Forex Trading on ufxmarkets.com to see how each currency is doing.
The US dollar is the most popular currency by far - it is involved in over 90 percent of the daily Forex transactions. It's worth learning the "typical" US dollar rates first, as most users will trade primarily in this currency.
The Forex market has some big institutions that trade daily, and make up over 73 percent of daily trading. HSBC, Barclays, Morgan Stanley, Goldman Sachs, Morgan Chase, and Citigroup are some of the most active.
Despite being a worldwide marketplace, traders can be anywhere in the world, there are some Forex hotspots. London, Frankfurt, Sydney, Tokyo, and New York are the most active hubs for lively Forex.
The Forex marketplace has a daily turnover of around 1.9 trillion US dollars. This is huge - for comparison, the New York Stock Exchange has a daily turnover of 28 billion US dollars.
These are some useful facts about Foreign Exchange that can help you become a better trader. Use these facts to your advantage to help you make money through Forex.
Tips for Success in Forex
The Swiss franc is a currency preferred by the risk-aversive. It tends to be a very safe currency, and quite low-profile - but avoiding risks does limit your potential profits.
Watching the news, helps you gain insights on the latest Forex trends. In-depth news programs often cover the Forex market, and will also give you valuable tips about the conditions worldwide. When you learn how to predict currency changes, this can be valuable.
There are hundreds of pieces of software and websites designed to help you make money through Forex, along with offering other useful tools such as, tracking and alerts. Each piece of software will have its benefits - try a few out to see which you find easiest to use, and which suits your style of trading. You can also use charts which show the most used applications to find new software for Forex.