Making money selling money - Forex trading.

For many of us every time we think of getting rich young we think of Forex trade though we don't know anything about it. So on Monday business today we are going to understand this term.

What is in here?

• What is forex?

• What is the forex market?

• Trading currencies?

• How to make money

• Pros of forex trading.

• Risks in forex trading.

• Kona meme.

1.What is Forex?

In simple words, it’s the global financial market that allows one to trade currencies.

Forex trading is similar to the currency exchange you may do while traveling abroad: A trader buys one currency and sells another, and the exchange rate constantly fluctuates based on supply and demand.

Currencies are traded in the foreign exchange market, a global marketplace that’s open 24 hours a day Monday through Friday. All forex trading is conducted over the counter (OTC), meaning there’s no physical exchange and a global network of banks and other financial institutions oversee the market Unlike stock markets where Exchange companies oversee the market.

In simple way Forex works this way:

If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit.

A forex trader might buy U.S. dollars (and sell Ksh), for example, if she believes the dollar will strengthen in value and therefore be able to buy more Ksh in the future.

About forex market

The forex market is by far the largest and most liquid financial market in the world, with an estimated average global daily turnover of more than US$6.5 trillion — which has risen from $5 trillion just a few years ago.

One critical feature of the forex market is that there is no central marketplace or exchange in a central location, as all trading is done electronically via computer networks. This is known as an over the counter (OTC) market.

How are currencies traded?

All currencies are assigned a three-letter code much like a stock’s ticker symbol.

All forex trading is expressed as a combination of the two currencies being exchanged. Example : KSH/USD.

• The currency on the left (the KSH) is the base currency.

• The currency on the right (the U.S. dollar) is the quote currency.

• The exchange rate represents how much of the quote currency is needed to buy 1 unit of the base currency. As a result, the base currency is always expressed as 1 unit while the quote currency varies based on the current market and how much is needed to buy 1 unit of the base currency.

• If the KSH/USD exchange rate is 0.0072, that means 1Ksh will buy $0.0072 (or, put another way, it will cost $0.0072 to buy 1Ksh).

• When the exchange rate rises, that means the base currency has risen in value relative to the quote currency (because 1Ksh will buy more U.S. dollars) and conversely, if the exchange rate falls, that means the base currency has fallen in value.

It is important to note that though I used Ksh as an Example the trade rarely happens in Ksh most of exchange is done in USD,Japanese yen (JPY), the British pound (GBP), the Australian dollar (AUD), the Canadian dollar (CAD), the Swiss franc (CHF) and the New Zealand dollar (NZD).

What do you need to know about forex?

In currency trading, you buy one currency and sell another. Your broker handles the actual transactions. Buying a currency pair means you expect the first currency to rise or the second to fall. Selling means you anticipate the first currency to fall or the second to rise. Profits are added to your account. You can withdraw funds at any time. Start with as little as $100 and take minimal risks. Demo accounts help, but trading with real money gives you real experience. Leverage multiplies gains and losses. Begin with a small amount and low leverage. Forex profits are measured in pips, with each pip's value depending on your account and leverage. Beginners aim for 1 pip = 1 cent. Daily profits range from 20 to 100 pips.

The Benefits of Forex Trading

Forex trading is a rapidly growing market that offers a number of benefits to investors. There is no need to carry any collateral, and there is less chances of you losing all your money. Forex trading also offers significant opportunities for high returns. In fact, some forex brokers are able to offer returns as high as 40 percent per day. This makes forex trading an extremely lucrative investment option.

One of the biggest benefits of forex trading is that it allows you to take advantage of global economic fluctuations. By trading in forex markets, you can make money when prices are high and protect yourself from losses when prices are low. In addition, forex trading provides an opportunity to make quick and easy investments that can have a large impact on your overall financial situation.

What moves the market?

Like any other market, currency prices are set by the supply and demand of sellers and buyers. However, there are other macro forces at play in this market. Demand for particular currencies can also be influenced by interest rates, central bank policy, the pace of economic growth and the political environment in the country in question.

The forex market is open 24 hours a day, five days a week, which gives traders in this market the opportunity to react to news that might not affect the stock market until much later. Because so much of currency trading focuses on speculation or hedging, it’s important for traders to be up to speed on the dynamics that could cause sharp spikes in currencies.

The Risks of Forex Trading

Forex trading is a highly speculative investment that can lead to significant losses. Before you start forex trading, you should understand the risks involved.

Forex trading is a type of financial market where currencies are traded between two parties. The foreign exchange market is one of the most complex and volatile markets in the world.

There are several risks associated with forex trading: foreign exchange rate risk, market risk, liquidity risk and margin call risk.

• Foreign exchange rate risk is the risk that your currency will lose value against other currencies.

• Market risk is the risk that the price of your currency will fluctuate unpredictably.

• Liquidity risk is the risk that you will not be able to sell your currency at a desired price due to insufficient supply or demand.

• Margin call risk is the chance that your broker will require you to deposit more money into your account to continue trading.

Before you start forex trading, it is important to understand all of these risks and how they could affect your investment. Make sure you have a clear understanding of your goals and objectives, as well as your financial situation and limits before engaging in this risky activity.

Now Where do you start?

Before starting to trade in forex I would advise you to research in depth on the same before placing your own money on the same. I know a friend of mine who self-taught himself Forex from YouTube and now he is making good money. Also there are courses in Udemy that can help on the some

I won't point out any specific platform to start trading forex since I wrote this from research and not experience. But if you want to learn more you can inbox me and I can connect you to people who do forex.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.