If you have ever travel to a foreign country you may have needed to exchange your money if so you've already participated in forex trading. Forex is the short form of foreign exchange well. Forex is a bit more than that for example companies buy goods from other countries in order to buy them they need to obtain the local currency first just like us.
When going on holiday the difference is they will exchange huge amounts, when these companies exchange these huge amounts they will actually move the price because the demand for the currency that they need increases.
When the demand increases the price increases with all this exchanging going on around the world the exchange rates constantly move this is how it works when currencies are exchanged.
They have a certain price the exchange rate as in any market the price of a currency is determined by the law of supply and demand if there are many people or companies that want to change euros into dollars the price of the dollar will rise against the euro and so the exchange rate will change let's use an everyday.
Example to explain how you can actually profit from this say you live in Europe and went on holiday to the United States let's say that you changed your 500 euros into US dollars at the rate of point 4 dollars for every euro you got 700 US dollars.
But you do not spend any money at all so you still have 700 dollars after you come back after the exchange rate move from one point four to one point three instead of getting just 500 euros back.
You actually get five hundred and thirty eight and a half euros you have gained thirty eight and a half heroes simply from holding your money and dollars while the exchange rate changed this is essentially how we trade in the forex market.
We buy a certain amount of a currency hold on to it whilst the exchange rate moves then change it back making money along the way how to decide when the right time to buy CEL is exactly what we teach you throughout the rest of our learning lessons as.
You can imagine traveling a lot and saving a bit of money on your holiday budget and then exchanging it it's not really a practical approach to trading currencies fortunately there is an easier way to do this.
You can trade currency through online exchange offices called brokers what this means is that you can exchange currencies online throughout the day and take advantage of the constantly fluctuating exchange rates just as in the example of when you went on holiday you combine different currencies
And make a profit as the exchange rates change this is trading the forex market trading Forex online with a broker has many benefits you can trade Forex from your home or anywhere that you have an internet connection the forex market never sleeps it is open 24 hours a day five days a week.
And so can suit your daily routine you do not need a huge budget to get started as little as a hundred and fifty dollars is enough to begin trading and building your account over time of course it will require some learning until you get there.
But this is exactly what trade MO is here for to help you learn how to trade in a way that can suit your individual lifestyle and to help you navigate your way through the forex market.