Friday, November 22, 2019

Episode 8: Forex Trading

Episode 8: Forex Trading

I had no idea, that you could trade foreign currency, on an open market as you would with stocks. I was always under the assumption that this process was only reserved for financial institutions, or governments. I was also under the assumption that if you wanted to participate in the trade of foreign  currencies, you needed a license, as needed for those shops you see when travelling on vacation, that will exchange your money for you.
Well, you don't know what you don't know!
It seems this week I learned that foreign exchange trading is a real thing. Anyone with a computer/smartphone can set up an account and be trading within minutes, no license required.

This is what wiki has to say...
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the credit market.[1] (click here to see the rest).

I just started learning, and haven't dared to invest any real money yet, but it seems exciting. One of the benefits of Forex trading is that because of these micro transactions, you aren't spending a vast amount of money, and that $100 can get you started.

I'm not going to make any recommendations, as I'm still learning and trying to understand how to use the software properly. However I am thinking this might be a topic that will take a few more weeks... 

Stay tuned

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