Learning forex aims to find out the ins and outs of foreign exchange or what is popularly known as foreign exchange alias foreign exchange.
Learning forex is different from trading in forex. At the learning stage, you are not necessarily trading in forex, especially for beginners.
Before you jump directly into this risky investment, you need to know the meaning of forex, the benefits, the market, how it works, the advantages vs the risks, to the fees charged by the broker.
After that, there is some knowledge that investors at every level must cultivate from beginners to pros. Let’s not be curious, let’s look at the most complete and latest reviews about learning forex for beginners below.
What is forex?
Forex is an acronym or abbreviation of foreign exchange which means the exchange of foreign currencies. The general term or another name for forex is foreign exchange (forex).
When discussing forex, it means the comparison of the value of a country’s currency with other countries. For example, the rupiah (IDR) with the US dollar (USD).
Well, in the world of forex there is something called forex trading. For those of you who want to learn forex, you must know what trading is in the forex world.
Forex trading is a transaction of buying and selling currencies. So, this trading can be your opportunity to invest. The profit is from the difference between the buying and selling prices of the currency. You can use this application to trade roboforex.com
In online forex trading, you can make transactions anytime and anywhere for a full 24 hours, Monday-Friday.
Forex market characteristics
The forex market has two characteristics that distinguish it from the stock market. Here’s a brief explanation:
- Over the counter (OTC) is a transaction that is only carried out by two parties, namely investors or traders with brokers. In the stock exchange, transactions are carried out by three parties, namely investors, brokers and stock exchanges.
- There is no exchange of goods where, forex traders only see the price difference. This is different from the stock exchange, which buys shares to be deposited in a custodial bank.
How forex trading works
Similar to the simple principle of stock trading, buy when prices are low and sell when prices are high. Likewise, how forex trading works.
The reason is, traders take advantage of the price difference. Then how to determine forex prices? Here are things you want to know about how forex trading works:
- Pair or currency pairs
In the world of forex, the price that becomes the benchmark is the exchange rate of a pair of currencies. The term is called a pair . So, there must be a currency exchange rate pair that is a trading reference. Currently, there are 47 currency pairs from various countries around the world in the forex market.
- Open buy and open sell
What is open buy and open sell ? Open buy and open sell positions are actually when the trader expects one of the currency pairs to strengthen and the other to weaken. Of course, this aims to predict the benefits that will be obtained.
- PIPs for your reference
In the world of forex, price movements are called PIPs. Well, this PIP is an important reference that you must understand. Especially when you are learning forex.