If you have a thing for money, business and trading, then you might have heard a lot about forex trading.
And you might have been bumping into people who rave about the FX trading and have numerous arguments to prove it as one of the best engaging markets in the world. With the daily trading market of $5 trillion, it might also seem true.
Irrespective of all these facts and figures, and raving people, the forex market has more stories of losses, than stories about the road to riches. But despite all the volatility and unpredictability associated with this currency market, it is still going strong, and more and more people are stepping into this turbulent market to test waters.
But what is forex trading, and why is it getting so popular?
What is Forex Trading?
The whole world doesn’t run on one currency. Businesses dealing with people from different countries, or people travelling to other countries have to convert their currency into the currency of the other country. And that is where forex trading comes into action.
Forex, also called foreign exchange, is trading of different currencies between seller and buyer. Previously, the forex market was only comprised of big corporations and central banks. But now individual retailers are also coming into the scene with money as low as $1000. But little fluctuation in the prices can put them in a risky position.
But amidst this risky situation, why more and more individual retailers are entering into the scene?
One of the reasons why it is gaining immense popularity is due to its easy accessibility. You can engage in it within the premises of your home while sitting on your couch because it all happens online. You just need a digital gadget and internet connection to become part of this $5 trillion market.
24/7 Open Market:
The stock market has a particular running time, but not the forex market. This market runs on the international level, and different areas of the world have different time zones. The night in Asia means morning on the other end of the world. So, retailers in Asia can work with people in America during their business hours. It also means that you don’t have to compromise on job and take forex trading as a side gig during your favourable time.
Little Margin of Manipulation:
Another benefit of the FX market is its high level of liquidity. It means that you can buy the currency from the market without facing any drastic change in its actual price. The money exchange market is a huge market with so many people involved and 24/7 working in it that it is very difficult to manipulate the market price and scam others. That’s why the forex market is called as liquid and best suited for newbies who are fearful of being scammed.
If you are also thinking to earn some extra money along with your current job position, then forex trading might work for you. You just need to be wary of its volatility and instability, other than that all is good!