In any market, we are going to find competition; you are always going to work and trust with the best offer because you are the client and you deserve the best. Now, you are going to see some of the many reasons why FOREX is better than other markets and why it is one of the best options to make your exchanges.
What is Forex?
It is also known as FX, currency trading, or a foreign exchange. Forex is a market that is decentralized and global.
As you should know, this means that in this site or “place” you can trade all the currencies around the world.
As it is known, all the currencies need to be exchanged according to every country and it’s important to do that in a safe place. And in this site, you can learn to trade and to exchange your money in a safe way.
In Forex, you are going to work just with two currencies. This means that you can only exchange your money into another currency.
Also, once you learn to trade, you can trade your currencies on what you think is the right value. If you want to trade up or down, you can do it; if you want to buy currencies you can do it; and, if you want to sell it, you can do it too.
What are the benefits of the Forex market?
- One of the biggest and remarkable benefits of Forex is the practically endless amount of possibilities that open up for you once you know what you’re doing. There is no limitation of the things you want to do in this place, because the only requirement is that you need to know what you are doing, and if you don´t know, the only affected person will be you.
- As such, if you see that your pair is losing strength, you can simply change it. Or if it’s just one of the currencies, you can swap that half of the pair for another coin.
- With Forex, you will have almost 24/7 service, and most important, wherever you are. This means that there will always be a group that is going to be willing to help you and to solve your doubts.
- Forex will give you lessons to trade with real-time instructions in different languages. They count with a platform available in many languages and they are willing to give you mini-classes at any point of your trading experience.
- Also, there’s no central marketplace to the foreign exchange.
Now, let’s see a few of the fundamental things that you can find in FOREX that are going to be essential in your trading journey.
- Interest Rates
The interest rates and the expectations of it are a key in the Forex market. This fundamental factor of the foreign exchange market is controlled by a country´s central bank.
This is clearly going to provide the inducement for the carry trade where the trader buys the currencies from a country that owns a higher interest rate against the currency of a country with lower interest rates, also earning the differential.
And this is definitely a huge advantage in the Forex market.
- Commodities Prices
This is something remarkable in the Forex market because it is known for having the best prices of all markets.
This doesn’t mean that you are going to lose money if you trade your currencies; it means that if you are going to be a customer, you will be truly pleased. And, being a trader, you will have many commodities in the platform and the losses will be lower.
- Consumer Price Index
The consumer price index is going to measure the change in the prices across over 150 categories.
And, how does that help? Well, this will help you to see if a country is losing or making money in all its products and services.
- Economic Indicator.
The economic indicators are reports released by a government (or even a private organization) that will detail for you the economic performance. In the Forex market you have a quick access to them, this way you will be informed of any change that can affect the way that you are trading.
- Industrial Production
This is another report that can be confused with the economic indicator, but it is important to see that this one is a type of report that will show you the change in the production of certain factories and utilities that a nation owns. Even if it is different, you need to give it the same used as the economic indicator.
The Forex market is one of the most famous and safe markets to trade, and you shouldn’t doubt a second to start working with them.