How Forex Market Operate

Here first we need to know that, what is traded in FOREX Market? The simple answer in Money or Currency.

Because we are not buying anything in physical, Forex Trading can be confusing. Think of buying a currency as buying a share in a particular country, kind of buying share in a company. The price of the currency is direct reflection of the market’s opinion on the current and future health of it’s respective economy.

When you but Indian Rupee, you are basically buying a share in the “Indian Economy”. You are betting that the Indian Economy is doing well and will even get better as time goes. Once you sell those “shares” back to the market you will end up with a profit or loss.

The exchange rate of one currency versus other currencies is a reflection of the condition of that country’s economy, compared to other countries’ economies.

Major Currencies

As a new Forex trader, you must be interested to know the list of Major Currencies to start trading with.

CODECOUNTRYCURRENCYNICKNAME
USDUnited StatesDollarBuck
EUREurozoneEuroFiber
JPYJapanYenYen
GBPGreat BritainPoundCable
CHFSwitzerlandFrancSwissy
CADCanadaDollarLoonie
AUDAustraliaDollarAussie
NZDNew ZealandDollarKiwi
Why these listed currencies are called the “majors” because they are the most widely traded ones.

Currency symbols always have three letters. By 1973, the International Organization for Standardization (ISO) established the three-letter codes for currencies that we use today. The first two letters identify the name of the country and the third letter identifies the name of that country’s currency, usually the first letter of the currency’s name. These three letters are known as ISO 4217 Currency Codes.

Lets take AED for instance

AE stand for Aarab Emirates and D stands for Dirham. Hope it’s now easy to understand

What is Forex

In Simple term you can say FOREX is FOREIGN EXCHANGE. You can say the global market that allows you to exchange of one currency to another. When you travel by flight to another country, you usually had to find a currency exchange booth at the airport so that you can exchange the money you have in your wallet into currency of the country you are visiting.

There you found a Notice Screen showing different exchange rate of different currencies. Now think you are coming back from America and having some USD [US Dollars] in your pocket. You find “Indian Rupee” and think of yourself “Wow! 1 USD worth 79 INR” and I have 50 USD, I am going to be rich.

When you do this, you entered in the FOREX Market, you exchanged one currency to another. Or in Trading Term you can say, you sold USD for INR.

Before you fly back to America, you stopped by the same currency exchange booth to exchange INR, leftover after meeting your all expenditure in India and noticed the Exchange Rate have changed. This change in the Exchange Rate allow you to make money in the Foreign Exchange Market.

This Foreign Exchange Market which is usually known as “FOREX” or “Fx“, in the largest financial Market in this world.

Compare with Stock Market

The largest stock market in the world, the New York Stock Exchange (NYSE), trades a volume of about $22.4 billion each day. The Foreign Exchange Market looks absolutely Enormous Giant comparing to NYSE with it’s USD 5 trillion a trade day volume. When people talk about the market, they usually means . So the NYSE sound big, it’s loud and likes to make a lot of noise.

The Currency Market is over 200 times bigger! It;s Huge! The huge USD 5 trillion numbers cover the Global Foreign Exchange Market. But the daily trading volume from the retails traders (that is people like you and me) make between 5-6% of overall volume or you can say between 300-400 Billion.

Where from it operates

Now, this FOREX market operates 24 hours a day 5 days a week, only closing down during weekends. The FOREX market does not close at the end of each business day.

Instead, the trading just shifts to different financial centres around the world.

The day starts when traders wake up in Wellington, then moves to Sydney, Singapore, Hong Kong, Tokyo, Frankfurt, London, and finally, New York, before trading starts all over again in Wellington!

start investing for some extra income

How I started my first investment

I was looking for some other source of Income, because I was taught that there should be multiple source of Income. During this time I was completely into Website Development and Digital Marketing as a free lancer. But working as a free-lancer was not enough to give me the freedom to do anything what I wanted to do.

During this time one of my friend suggested me to start investing. Now I was having two options whether I should invest in Forex or Share. Both the fields are very new to me, and to work properly I need to learn those things. So I started learning more details about Investment in Forex & Share Market.

Search & Research

Here I found that investment and working in Forex is more profitable but it comes with maximum risk. When I went more deep into this Forex Market I came to know that, investment in Forex in 100% calculative. Now a person like me driven by heart, it was not so easy to gain profit from Forex market. I came to know that most of the Forex trading platforms are providing trial account to practice.

That was the time when I was searching more and more to learn about Forex trade. I went through many online courses (paid & free), but most of them I found useless. Because those people whoever is publishing those course just wanted to make them self popular or was trying to get some money. After all my research I learn I need to test the chilly to find it out how hot it is.

The Beginning

So I decided to jump into the rived. But I don’t know how to swim, and that was a terrible mistake for me. So I lost my 1st investment, though it was very small (as I was started with only USD 10) within next couple of hours. Again next day I put another USD 10 and again I started. This time also I lost my investment but now my 2nd investment sustained for 10 working days and before loosing all I was able to gain USD 25 into the same.

Learning Process

gain I was searching for new courses, mentors who can teach me more about Forex Trading. So I started visiting various websites and YouTube Channels randomly. Now I started learning basic technical things about Money Market (Share / Forex). At the same time how to implement this technical knowledge into real life.

I found a new website name https://www.babypips.com/, and that was a turning point for me. Here I started learning more about What is Forex. It is completely free and within a span of 15 days I learn a lots of things here. Again I invested some money, and this time it was USD 100. Slowly I got into subject, and in next 6 months I recovered all my previous losses in terms of money and time.

Not a bed of Rose Petal

I never thought that it could be a bed of rose petal, I was expecting thorn also on my way. One fine morning I lost my access to Forex account. I contacted the service providers in Mumbai. They said “It is a server problem and in next 3/4 working days it will be fine” and then I lost everything. That time I had USD 500 as working capital. In the mean while I withdrawn USD 400 in total time to time.

Now, it was the time when I lost all my trust into Forex Market. But after a few month I recover and start my search to find out a better service better. I found fbs.com. I started working with FBS but this time I start working with only a investment of USD 10. This is almost now 4 years I am working with FBS, without facing any problem. Now I am really happy as I found a reliable service provider. FBS is into the market for more than a decade since their inception from 2009. If you are looking for a reliable and honest broker, consider FBS. You will be surprised how easy and comfortable trading on Forex can become.