What is Forex?

What is Forex?

Foreign Exchange (forex) otherwise known as the foreign exchange (forex) is one of the investment options that developed in Indonesia at this time. Forex Trading is a trading exchange foreign currency in the international financial markets. The forex market is the largest financial market in the world.

Conducting transactions in the Forex market are: the governments of the world, the world's major banks, international companies, hedge funds, currency speculators and individuals. Thus the number of players in the forex market is causing the velocity of money becomes very fast. Transactions that occurred more than 1.9 trillion US dollars every day to make money can be transferred from one place to another in just a few seconds.

As well as the stock market players can do forex trading by using brokerage services (Commission house) or do it yourself online via the internet.

Forex trading has several advantages compared to trade financial products such as stock trading, namely:

24 Hours Trading

Can be done 24 hours a day, 5 days a week, whenever and wherever we are.

Liquidity

Highly liquid with a number of broker / dealers who play in the forex market.

Low transaction costs

Brokerage commissions are relatively small, even for online trading via the internet no transaction fees but are charged only the amount of variety. In addition the spread is also small.

2 Potential advantages direction (up or down)

Have good profit potential in a strong currency and the currency weakened.

Margin Trading

Trading with margin to make purchasing power exceeds the amount of capital owned.