Earn Extra Income Working From Home With Forex Trading
Would you like to earn extra income trading forex from the comfort of your own home or on the go via your smart device? Well, you may ask, what is forex trading? Simple put, forex means Foreign exchange and trading means buying and selling.
Before we dive into this I would like to explain what forex trading is in a little more detail.
It is the process of exchanging one currency to another currency. This can be for a variety of reasons which could be for going on a holiday, doing business abroad or trading currencies.
According to a report from a global bank for national central banks, the daily average volume in daily forex trading was more than $5.1 trillion which mean there is a lot of money to be made in this market.
The forex market is opened 5 days a week, 24 hours a day starting each day in Australia at 10pm (UK time) on a Sunday night. London, Frankfurt, Sydney, New York and Tokyo are the major stock exchange centres.
The Forex Market Hierarchy
Retail traders are not the only participants in the forex trading industry. In fact, there are major organisations who contribute to the forex market making trading currencies a professional business. They are;
- Major Banks including Central Banks
- Electronic Broking Services
- Medium and Small Sized Banks
- Hedge Funds, Large Commercial Corporations | Retail ECNs
- Retail Traders – Which would be you and I (the average person)
Pros and Challenges of Forex Trading
Daily trading volumes in forex offers the most liquidity which means that traders can easily enter and exit trades in any of the major currencies within minutes or even seconds with a decent profit for the day.
Trading foreign exchange productively requires a great level of understanding how the markets work. A forex trader will need to have an understanding of the economies of the currency pairs of the countries they chose to trade and the fundamentals that drive those currency values.
Earn Extra Income Forex Trading – The Benefits?
Almost anyone can learn to trade forex with a small amount of capital and start off with a demo account. This is the safest and best way to start after you have educated yourself.
Understanding the fundamentals analysis that drive currency values and educating yourself with technical analysis may help a new forex trader to become very profitable. Brokers in the forex market allow a high leverage, which means that aspiring traders that educate themselves, with a disciplined attitude can take large trades even with a low capital of their own and earn a good return on their investments.
A trader must understand the use of leverage and its risks. A high leverage can make you a lot of money but without experience can lead to the loss of your capital.