One can buy; sell the currencies all over the world. Although, it has very low account opening cost and one can start investing in this market with a little amount also like $100. Remember, less investment brings less risk and less profit but highest you invest will bring highest returns but with high risk of loss.
In stock market there is SEBI who manage all the transactions or trade happening in various stock exchanges.
Historical information about the market – Have you ever wonder that from where would it started?
Currencies are always considered as precious metals. Earlier, Currencies was in the form of Gold and Silver and now days it’s on paper but as precious as earlier. After Second World War, one agreement passed which is Bretton Wood Agreement which replaced the gold and silver currencies. This agreement comes with three organizations – International Monetary Fund (IMF), General Agreement on Tarrif and Trade (GATT), International Bank of Reconstruction and Development (IBRD). Now, the gold replaced by US. DOLLARS.
Types of Forex market –
Spot Forex Market – On the spot exchange of currency on current price rates. This system is not in stock trading and the participants of this market are mostly banks, brokers, investors etc. where they trade for themselves as well as for their customers.
Forward Market of Forex – Trade will happen in future date but here two parties agree for the trade on a particular price or quantity. Here also the parties can be any company, individuals, government etc. This type of market basically used for hedging.
Future market of Forex – Basic function of future market and forward Market are almost same. The Only difference between both is that future market use centralized exchanges.
Everything has its own advantages and disadvantages – similarly, forex market also has its own pros and cons.
Advantages – Trading is available full 24 x 7 with flexibility. Although, this market comes with lots of options with less transaction cost. People always complaint that they are unable to trade because of less time they have. Here, people do trade without compromising there 9 to 5 job.
Disadvantages – High leverage comes with high risk. Good leverage rates not only ensure the high return rates but also high risk rates.
Note : No matter, which type of trading you are doing you need be patient before entering into this field then only you achieve high rates of profits.